Expense or benefit

13 May 2009

Issue: 4205 / Categories: Forum & Feedback , Employees , Income Tax

Clarification is required as to what must be declared on returns of expenses and benefit forms P11D. For example, should this include train tickets purchased for business travel? Also, what is the position regarding items purchased by the employee on behalf of the employer and then reimbursed?

For my peace of mind can readers confirm what needs to be entered on forms P11D regarding expenses paid or reimbursed to employees?

I have had arguments before with colleagues regarding whether let’s say the cost of a train ticket purchased by the employer to enable an employee to travel to a business event should be shown on the form P11D. After all the money has not gone through the employee’s hands.

Conversely what about money reimbursed to an employee (or even a director) who has purchased goods or services on behalf of the employer?

Do these amounts need to be entered on forms P11D? Some of the directors of my ‘one-man companies’ tend to pay all the business expenses through their personal credit cards (presumably to avoid business bank account charges) and then reimburse themselves with say a monthly cheque from the business.

...

Only subscribers may read the full article

Subscribe Now...

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.

Once you have registered, you will receive an email directing you back to read this item in full.