The place I currently work at prepare a P11D for everyone who works there and I'm not entirely sure its necessary so i thought I would see what you guys think.
Take mine for example, the benefits that have been attributed to me this year total 12.40, namely a bacon sandwich and a box of beer at Xmas, most people only have this amount or not much more.
I have seen you can apply for dispensation not to do them, is this applicable in our case for people who don't get what I would class as a benefit? Or do HMRC really think one bacon butty and a box of beer needs reporting to them.
I have asked my line manager but he would rather we filled in too many forms than not enough, which I can kind of understand but I would like to know what you guys think.
The revenue basically believe that every penny should be reported to them.
Were the £12.40 for the box of beer and sandwich at Christmas instead of the annual party? The employer can spend up to £150 on each employee at christmas for the party which would not be a P11D item.
If the party consisted of a sandwich and a few beers then so be it but by doing it differently this could have ended up as a non P11D item.
Seems that with a bit of forethought the documentation on this could have been simplified.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
The beer we all got was a xmas gift/thank you, we didnt have an Xmas party and the sandwiches I think were a thanks when we had had a busy month last summer.
So many things that your employer has got wrong here.
The sandwiches should be supplied whilst you are doing overtime. Not as a thankyou but as a basic subsistence requirement for working late. That would be non P11D.
A Christmas gift of Alcohol or Tobacco products will always be taxed but if they had supplied the Alcohol for a Christmas part it would not have been.
In having to fill out the associated P11D's for poor planning they are spending money on your time in doing the documentation so it costs the employer twice and the employee ends up with a taxable benefit.
I'm guessing that the people in your accounts department are not accountants!
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
You are right they aren't accountants and I have raised this subject every year but I get nowhere.
We fill out sheets for everything here, or I do and it does seem to be very over the top. As you say we are not only having my time doing it all but it puts peoples backs up when they accept a gift or a small thank you with brown sauce and then end up with a massive wadge of paper relating to it.
A dispensation needs to be claimed and agreed by hmrc but it would save a lot of time and effort on such trivial amounts.
Of course the it doesn't have to be a christmas party but that is the most common time for a few drinks for the staff. The important thing here is that all staff are invited. They can even bring their partners if invited (again all need to be invited) and then they get £150. If the spend goes over the £150, then the whole amount is subject to P11D rather than just the marginal amount.
Whats the point in Christmas parties if you bring your partners!
Oh yes, that why I'm divorced isn't it!!!
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
2) (probably more importantly) The Holiday letting changes have been dropped. (So furnished holiday accommodation will still be regarded as a trade).
Also the 50p levy on landlines has been dropped.
So, looks as though the budget from the first of April was an April fools joke by the government after all!
talk in a bit,
Shaun.
P.S. I read the original before you changed it. Wasn't so bad.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
