P11d - payments on employers behalf
I'm having a look at some P11d forms and reviewing the HMRC guidence.
Can anyone please point me to the HMRC literature that clarifies what the position is when an employee purchases something for the business on his own personal credit card and is then reimbursed. For example the employee uses his credit card to buy some stationery for £100 and the company then reimburse him.
The HMRC manual 480(2011) Expenses and benefits says on page 11:
Purchases on employer’s behalf
Businesses are often run in such a way that employees make payments on their employer’s behalf.
For example, an employee may buy stamps, stationery and items of equipment for the employer
and be reimbursed the costs incurred from petty cash or by cheque. Such transactions are not
providing the employee with either earnings or expenses because the employee has received no
money of his own. Accordingly such reimbursements do not feature on the P11D.
However I am aware that where these purchases have been made on the employee's credit card (rather than cash or cheque) that they have been reported as expenses with claims then made by the employee for job related expenses. Is this right?
I also believe that travel, subsistence and accommodation have to be reported and are not covered by the paragraph above - is that correct?
I am aware that dispensations can be applied for.
- Goodwill omitted from first years accounts 178 12
- Buying Microsoft's Surface Pro 3 436 9
- Course costs for retraining as a barrister 87 6
- Travel and Subsistence expenses while abroad 269 4
- How to post Sales figures in Sage50 Accounts (we use separate Sales ledger) 93 2
- Straightforward email correspondence or PDF letter attached to blank email? 518 5
- Limited company buying a car 104 3
- ACCA practice certificates 478 5
- Limited company buying director's car 273 10
- Question on HMRC past taxes (+penalties) on non-resident 58 1
- Is it possible to change a client's trading address for Vat purposes online 62 1
- WC's and capital allowances 166 3
- Entrepeneurs relief 292 13
- Dress code 1,532 36
- Which company is best for online new company formation? 473 13
- CTA and Tolley's tax handbooks 247 6
- HMRC Seminar on Penalties - Did you last the course? 366 4
- CIC Tax - what is trading? 466 23
- What is the status of "Whistleblowing" these days - do you get rewarded? 165 4
- Loan Repayment on Invoice 98 3
- CTA study material 765
- Anyone have clients that use Pay4Later to offer customers credit? 475
- Raiders of the Lost Tax File 387
- Employment related securities question 306
- AIM Stocks and IHT 278
- Tax Relief for overseas employees 256
- Expat pension contributions? 255
- Trust for Employee 233
- Service Charge Accountant Career Options 166
- IPP (International Pension Plan) income 146