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.
- CIMA at the age of 35?? 376 6
- Land Rover Discovery 3.0 SDV6 255 Comm Auto 2 seat 178 5
- New Employers Helpline 113 2
- Setting up PAYE scheme without UTR 209 5
- Overlap relief 712 19
- HMRC & daft penalty 2,258 17
- Budget 2015 - take two 169 3
- CIS Contractor has not issued tax deduction certificate to client 174 4
- VAT Query 160 2
- Sacked my first client 617 14
- Do you have to declare business expenditure on a personal credit card on your P11D? 399 9
- Accounts note disclosure - Directors 212 4
- CIS. Why is it so complicated? 2,254 24
- Share transfer question 251 9
- Director needs to withdraw 45k lump sum from company 611 11
- Trades and deadlines 132 3
- How to pay national insurance 646 18
- New Website Look 1,071 29
- Accounting for buying off bank 261 11
- Indemnity question re IR35? 225 5
- Has anyone been affected by the RBS payment breakdown? 424
- Straight line write off of Purchase Goodwill ??? 418
- WIP Software 285
- FRS 102 compliant illustrative accounts for an insurance company 283
- CGT, PPR and transfer of equity to spouse. 218
- No payroll scheme in place 217
- Do subcontractors on work for residential (student accomodation) construction 195
- Software recommendations 195
- Is there anything wrong with this? 188
- Free project management software with Gantt charts, preferably on-line 184