P11D Dispensation

P11D Dispensation

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Can a company with neither any paid employees and nor directors obtain P11D dispensation without a PAYE Reference ? I have several companies just started to trade and the directors have some travelling and entertaining expnses. It seems to me to be a waste of time to apply for PAYE reference and get involve in all recurrent EPS's just to be able to obtain P11D dispensation for non taxable travelling adentertaining expenses.

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By DMGbus
28th Jul 2014 08:49

Pseudo PAYE scheme
Employers requesting a dispensation before settingup a PAYE scheme should apply in writing.Where the dispensation is approved HMRC will create a pseudo PAYE reference for internal use (the pseudo PAYE reference is not issued to the employer). Pseudo schemes are referred to in HMRC’s pre-RTI guidance at PAYE20070.To apply for a dispensation before a PAYE scheme isset up, download and print form P11D(X) Dispensation for expenses payments and benefits inkind from HMRC’s website athttp://search2.hmrc.gov.uk/kb5/hmrc/forms/view.page?record=bkran5kpLxk&formId=3169.Send the completed form to: HMRC, Local Compliance, Specialist Employer Compliance, BowbackHouse, 299 Silbury Boulevard, Witan Gate West, Milton Keynes, Buckinghamshire, MK9 1NG.

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Euan's picture
By Euan MacLennan
28th Jul 2014 11:02

May soon be irrelevant

There is a consultation on replacing dispensations with an exemption from reporting reimbursements of tax-allowable expenses - see page 4 of Employer Bulletin No.48.

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By DMGbus
28th Jul 2014 13:59

Make sure that they are NOT TAXABLE

Here's HMRC official guidance stating no reporting on P11D required if the expenses are NOT TAXABLE:

General rule
9.1
An employer reimbursing or paying an employee’s travel expenses or who pays directly for an employee’s travel should:
• report details of the payments to us on form P11D by 6 July after the end of the tax year, and
• provide the employee with the details, or a copy of the P11D report, also by 6 July after the end of the tax year, and
• report details of Class 1A NICs on form P11D(b).
References here and elsewhere to form P11D apply equally to equivalent returns, including returns in an alternative format agreed with us.
9.2
For employees paid at a rate of £8,500 a year or more, employers must
also report the cash equivalent of any benefit including travel benefits – for
example, the provision of overnight accommodation or other travel facilities.
Exceptions to the general rule
9.3
Details do not have to be reported on form P11D if the payments:
• are not taxable

So make sure that no TAXABLE benefits are provided.

 

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