P11D Confusion ??

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Strantona
Strantona Registered Posts: 14 New contributor 🐸
in General accounting discussion
P11D's?? can anyone let me know if when a one man band limited company pays for an expence ie stationery or an over night accomodation then is reinbursed the same amount of money or put in Directors current account to be paid back later, do you have to put this on a P11d so that the company then pays National Insurance, i think this is un fair as there has been no benefit ??? so why does the company have to pay this ni???

WHAT WOULD HAPPEN IF THE ONE MAN BAND WRITES A COMPANY CHEQUE SURELY THIS DOESNT HAVE TO GO ON p11D ???

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  • deanshepherd
    deanshepherd Registered Posts: 1,809 Beyond epic contributor 🧙‍♂️
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    Reimbursed expenses go on the P11D but are not subject to Class 1A NIC.

    Best thing to do is get a dispensation in place to cover such items so they do not need to be included in future.
  • louise583
    louise583 Registered Posts: 3 New contributor 🐸
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    However, if you have not got a dispensation in place at the moment. The best thing to do is complete the P11d and then get your client to write to the Inspector of Taxes in their area and under a Section 336 claim state the expenses on the p11d were re-imbursed business expenses and therefore the individual should not be taxed or ni on them.
  • Nilesh Mandvia
    Nilesh Mandvia Registered Posts: 91 Regular contributor ⭐
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    You do not need to report on P11D if you reimburse expenses are for purchase on behalf of the company such as stationery, toner cartridge etc. Have a look at Booklet 480

    However you need to report reimburse for travel and subsitance if you do not have dispensation.
  • Nilesh Mandvia
    Nilesh Mandvia Registered Posts: 91 Regular contributor ⭐
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    One more thing to add is that cost of accomodation etc are reimburse, when you enter on P11D do not enter any thing in make good by employees. Even though it is reimburse and employee do not have benefit, however it has be to reported on to P11D. (One MIP commented on other forum that you enter the cost of accomodation and enter the same amount in make good by employee i.e. paid by employee resulting in benefit in zero, which is wrong)

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