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15th Jun 2009 14:00

A dispensation may be in place
If an employer can satisfy HMRC that it has sufficient monitoring and control of business expenses the Revenue will agree to dispense with declaring business expenses on P11ds, so not all employers who don't declare expenses are missing them out in error.

I believe that Doug is thinking about the concession which states that floats for expenses will not be treated as loans to the employee if they are under £1,000 and are accounted for within a certain length of time.

The Revenue have scope to charge a penalty of £3,000 for incorrect P11ds, but I have never seen one of these penalties being applied. In my experience, if the Revenue carry out a compliance review and find that genuine business expenses are not being properly reported on P11ds they tend to point out the error to the client and offer a dispensation if they are happy with the record keeping.

Personal expenses met by the company are of course a different matter!

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10th Jun 2009 12:11

Cash float
If the directors have a cash float for expenses of up to £1000 doesn't that get round the problem?

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By Anonymous
09th Jun 2009 15:36

Thorny issue
This is a very tricky area. I have a sneaking suspicion very many expenses do not get reported. In practice this is of little tax consequence where the employee would simply make an expense claim. I generrly tackle this issue by sending a questionnairre to clients and basically get them to supply the info. I dont tend to delve too deeply beyond that.. Some clients actually want us to attend their premises and extract the relevant info. In those cases I generally charge a separate fee for the P11ds (which I dont normally).

The simplest answer is to get as many dispensations as you can. You can suggest this to clients as chargeable work on the basis that it reduces admin in later years!

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17th Jun 2009 15:11

Never seen any adverse consequence.

I know a number of accountants who never bother with P11Ds for that exact reason.

I wish I could be as carefree!

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