I am fairly new to expenses/p11d’s (although have 12 years payroll experience).
I wonder if anyone could advise on the 2 scenario’s below.
Employee 1. Has a company car and fuel card. Private mileage is deducted from salary each month at a rate equal to HMRC advisory rate. Each month EE submits a private mileage record, usually stating something like ‘various journeys around Birmingham – 50 miles’. Am I correct in thinking this is insufficient? Do we require mileage readings and do I need to spot check that the mileage readings are correct? (for individual journeys and odometer readings). Is it correct that in the instances of deducting private mileage, fuel cards are not reported on P11d’s?
Employee 2. Uses his own car, but has a fuel card. The business pays for the fuel card, car maintenance, car tax etc. No deductions are made for private mileage. He has never had a P11d..... What would be my best course of action for this EE?
(In my defence I have only worked here for a matter of weeks– none of the policies/previous practices are mine. I will be changing them though!)
Thanks very much
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1. HMRC would expect to see more details then various mileage and round sum items. In my recent dealings, they would expect to see detailed logs to back up the claim.
If ALL private use is made good then there will be no benefit in kind to report.
2. This is the payment of fuel, maitnanece etc but with no company car. The correct treatment is to declare all on P11d, and the employee to claim private use in his tax return.
I would contact HMRC and come clean on the non declaration, and seek to disclose the amont now!!