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P11D for employee who started 1 April 2014?

We purchased a company on 1 April and took on employees through TUPE. One of them has a company car, do I have to complete a P11D for the 5 days of the 2013/14 tax year?? He wasn't paid in that tax year, with his first pay day being 28 April and he is on a salary of over £8.5k per annum..

No problem if I do, I just don't want to do one if I don't have to!!

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But ...
Did you buy the company's shares or just its asseys and undertaking?

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Yes if you purchased the company you would have been much better advised to keep the employment contracts where they were until at least the end of the tax year. Or did you not in fact buy the company, despite what you say?

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If you bought the company ...

If you bought the company, wasn't the employee employed for more than just the five days ?

Or did you transfer the trade to a new company of your own ?

But .... answering your question as it stands ... yes, you do.

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Apologies for confusion, but we only purchased the assets and trading of the company. The employees then transferred to our employment from 1 April. The employee is still employed but was only employed for 5 days of the 2013/14 tax year..

I suspect we have to do a P11D for the 5 days?

 

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Afraid so

Yes.

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Date Benefit Paid - another question

Sorry to highjack this but I have another question.

If an employee is taken on 1st April 2014, and a benefit accruing from 1st April is paid by the company to a third party, say, on 10th April 2014, could you then make a case that the cost to the company is in 2014/15?

I can't find any legislation or HMRC guidance on this, but I would go on the basic premise that employee remuneration generally is taxed at the point of receipt or on the payment of the cost of the benefit (e.g. in the case of employee expenses).

I'm just not sure in the case of benefits from a third party paid directly to the third party by a company (e.g. gym membership, health insurance).

 

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For the (presumably) very small amount involved for that 5 day period I would lose no sleep over treating it as all being in 2014/2015 even if that is not strictly correct, although I believe it might well be.

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