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P9D and expenses

P9D and expenses

The P9D states:

"If the employee paid expenses solely and necessarily in the performance of his or her duties and/or business travelling expenses and
you repaid the amount of those expenses, you do not need to include them here. Total all other expenses payments including:
• payments that included Value Added Tax (VAT), even if the VAT was later recovered from HMRC
• round sum allowances
• all relocation expenses payments and benefits (see note below)."

What types of expenses are HMRC thinking of when they refer to "payments that included Value Added Tax (VAT), even if the VAT was later recovered from HMRC"?

They can't be referring to private expenses (which should be payrolled anyway), as they refer to VAT being recovered. So that seems to leave expenses not incurred in the performance of duties, but what are some examples?


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18th Jun 2012 16:42

Just one example

Employer pays for employee's home telephone (in employer's name). Employer is entitled to recover VAT, but the reportable benefit is the VAT-inclusive amount.

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By stt
18th Jun 2012 16:49

thanks for your reply, but..

that isn't a benefit, nor are expenses involved.

Also, as it isn't convertible to money, it doesn't feature on a P9D in any case.

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18th Jun 2012 17:07

employer pays employees home phone bill and this is

not a benefit!?  where does it say that @stt?

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By stt
18th Jun 2012 17:15

Assuming, as it's in the employer's name, that it is for employment use, no benefit arises where private use is insignificant.

Of course, if the private use is significant, then a benefit does normally arise. However, in the context of a P9D, as that benefit cannot be converted to cash, there is no benefit as far as I am aware.

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