If the director of a one-man company pays his work-related hotel bill with the company debit card or company cheque, am I correct in thinking it doesn't have to go on the P11D?
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All business-related?
If it was accommodation provided to an employee (and directors are employees) in order to allow them to perform their duties, then it is simply a business expense and not a benefit. See the guidance on employee travel and subsistence.
All business-related?
If it was accommodation provided to an employee (and directors are employees) in order to allow them to perform their duties, then it is simply a business expense and not a benefit. See the guidance on employee travel and subsistence.
Yes, but should it be declared on the P11D?
Shouldn't any such payments be reported unless there is a dispensation or PSA.
The employee then claims the appropriate relief for any business element which seems to be 100% here?
Same booklet (490) chapter 9, and Appendix A.
I would say no because the company has paid for the accommodation, not the employee. If the employee had used their personal credit or debit card to pay for the accommodation and had then been reimbursed by the company, then the expense payment should be reported on the P11D.
I would say yes it needs to go on the P11D
http://www.hmrc.gov.uk/paye/exb/a-z/t/travel.htm#1
As well as including transport costs, the 'necessary costs of business travel' also include:
subsistence costs, such as mealsaccommodation if the travel requires an overnight stay
For company directors or employees earning at a rate of £8,500 or more per year:
report on form P11D - in section K, B or N - unless you have a dispensation covering this itemyou have no tax or NICs to pay
Thanks for the link - yes I agree too that this needs to go on the P11D. Apologies for my incorrect interpretation above.
That situation is covered by the first point
by directly providing the transport
As stepurhan says there is no overall taxable benefit but we have to round the houses to get there.
Dispensation
Grab a dispensation. If you ask nicely they may allow you to apply it retrospectively over the last tax year.
Company direct payment of expenses and P11Ds
If you look at HMRC 480 (2012) expenses and benefits chapter 3. Tax Treatment of Expenses Payments. In 3.2 it lists what constitutes and expense payment, or an allowance. It brings up the issue of 'purchases on behalf of the business' using a company credit card provided to the employee. As long as the employee makes it clear the purchase is on behalf of the company and the supplier accepts that, then it is not an expense payment under the benefit rules. Reading chapter 3. it seems likely that any expense paid by the company on a supplier account, and most paid by a sole director by company card would not be an 'expense payment' to an employee, and therefore would not have to appear on a P11D.