P11D - basic query

I understand that where an employee arranges entertainment and the company pays, there can be no NIC/PAYE due assuming it is business related, but that the cost should be entered in section N. But is it the payer's P11D or the entertained staff's P11D that the amounts are entered on?

E.G. A sole director pays £240 on his company barclaycard (so in effect the company pays) to take his staff (and himself) out for a business related(!) meal. Does this amount go on his P11D as a payment by him reimbursed by the company, or is it split between the various staff members (per capita) and do the individual amounts go on everyone's P11D as a "receipt of entertainment"? In other words is it the person paying the expense or the staff receiving the benefit?

What would happen if the director were entertaining clients?

I find this all very complicated.

Also, can I get a dispensation for staff entertaining or only for clients? The P11DX form seems to suggest it is only for client entertaining?

Thank you

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I think you are confusing benefits and expenses

Paula Sparrow |
Paula Sparrow's picture