Do I need a P11D dispensation

Do I need a P11D dispensation

Didn't find your answer?

If my company pays me expenses for using my own car for business purposes at 45p per mile I gather there are no tax implications.

They reimburse me via payroll, so if I do say 1000 business miles at month they would pay me £450 tax free.

Do they need to report this amount on a P11D or not?

Replies (4)

Please login or register to join the discussion.

Portia profile image
By Portia Nina Levin
02nd May 2015 11:00

(No subject)

Thanks (0)
Euan's picture
By Euan MacLennan
12th Feb 2015 13:40

Just to clarify

The tax-free limit on mileage allowance is 45p a mile for the first 10,000 business miles in the tax year, but 25p a mile for business mileage in excess of 10,000.  If the company sticks to the tax-free limits, there is nothing to report on a form P11D.  If they continue to pay you 45p a mile for business mileage in excess of 10,000 a year, there is a taxable benefit to be reported on a P11D.

Incidentally, why are you, an employee, concerned about whether your employer has to report this?

Thanks (0)
Replying to Wilson Philips:
avatar
By Rolly
12th Feb 2015 14:23

I forgot to mention I am a director. There are only 2 of us in the business (both classed as directors).

I won't being doing 1000 miles a month, so will be below 10 000 miles on an annual basis.

Thanks for the advice.

Thanks (0)
avatar
By RetiredTax
12th Feb 2015 20:57

Approved Mileage Allowance Payments
The above is how HMRC refer to such payments. I agree with the previous contributors.
Given it is (only) a 2 person Co'y possibly the most important factor is to have a comprehensive record of all business trips so you can justify the AMAP's being paid if called to do so by HMRC ~ incl.trip dates, places and customers/suppliers etc. visited (IMHO)

Thanks (0)