Claiming expenses

Case of sole director with no PAYE

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If you claim expenses, you normally have to submit P11D. But what if the business is not registered for PAYE as the company has got only one director with very small salary (around £300 per month)? Does it mean that the company has to register as employer with HMRC and operate PAYE only because it has to submit P11D? 

 

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By johngroganjga
23rd Jul 2016 13:46

Yes

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By nogammonsinanundoubledgame
23rd Jul 2016 14:00

You might wish to explore the possibility that P11D may not be required. That would solve your admin problems.
With kind regards
Clint Westwood

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By DMGbus
25th Jul 2016 08:45

The nature of the expenses will determine if a BIK arises - if no BIK then no P11D then no PAYE scheme.

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Replying to DMGbus:
By SteveHa
25th Jul 2016 08:55

Quote:

The nature of the expenses will determine if a BIK arises - if no BIK then no P11D then no PAYE scheme.

That's not strictly correct. For years up to and including 2015/16 reimbursed expenses, even when allowable under S.336, is reportable on P11D, and a separate claim for relief should be submitted by the beneficiary.

However, since the reimbursement is tax neutral where such a claim is made, and no Class 1A NI is charges on P11D(b), it's questionable whether HMRC would be bothered (no loss to the exchequer).

For 2016/17 onwards that reporting requirement is removed.

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