Hi all. Sorry - I'm sure this will have been covered before, but I am a bit stuck on P11D's for my own company.
2 directors, taking a salary and logging expenses each month for business mileage from our private cars (at 45p/25p per mile) mobile phones, and a small amount on stationery/stamps, occasionally a small amount on subsistence.
This is the first year end I have done on the HMRC Basic Tools / RTI submissions. To complete the year end, it has asked if we would be completing P11D's, so I asked our accountant, who has said no, these expenses do not have to go on a P11D. But looking at the HMRC site, and some references on here, it would appear that as directors, we should be filing one out. So I am now totally confused as to what to do!
The pragmatic approach taken by many accountants is that if there is no BIK involved then there are no tax implications and therefore tick the "no" box. HMRCs view is that you either apply for a dispensation to save the reporting of expenses on P11d or submit them at year end. If there are no tax implications it is a waste of both yours and HMRCs time and if AccountingWeb forums are to believed, nobody has ever heard of anybody being penalised for not submitting P11ds in these circumstances. I personally have ticked the P11ds are not due box.
If you are to follow HMRC's strict interpretation then you either get a dispensation or you need to complete a P11d and disclose things such as mileage claims and reimbursement of expenses paid personally.
Most accountants will take the view that unless there is any Class 1 NIC due, such as on a car benefit, then to complete the P11d is a waste of time and just a form filing exercise. As long as HMRC arent losing any tax then there arent likely to bother.
At the end of the day you would disclose on your personal tax return then claim relief that they are wholly, exclusively and necessarily incurred in the course of your business. So no tax would be due either personally or by the company.
