Payment of employee personal liability 2010/11
Employee's private bills found recently to have been paid by employer, going back to 2010/11. Just treated as expenses. This point is not in doubt.
1. This should be reported on a P11D, box B - HMRC confirm. And can file 2010/11 via website, apparently.
2. On the paper version of P11D, underneath box B there is a remark about "tax on notional payments not borne by employee within 90 days of receipt of each notional payment". I asked HMRC whether this applies to employee and they said no. I am not convinced, as I believe it is covered by S222 ITEPA. HMRC said employee will get taxed anyway as a result of P11D being submitted, but that is not the point of S222. Can anyone clarify please?
3. As this is NI'able as well, HMRC said would get technician to explain to me in 48 hours. Can't guarantee when and I might not be there anyway. So for NI for 2010/11 I assume P14 would have been wrong and I need to calculate manually the correct figures for P14 and P35 and write to tax office, asking employer to pay the extra NI. Do you agree?
4. As employer genuinely thought this expense was OK it was an unwitting mistake not to put whole thing on payroll, and I assume he can ask employee to repay Ees NI over several months etc. Do you agree?
5. Need to do all this all over again for 2011/12 as there were more payments then.
6. Have advised employee to pay bills himself from now on. Am about to clarify that none of these bills are non taxable. Meanwhile shall I get the payments since 6th April 2012 put on payroll as gross pay retrospectively?
- Intermediaries reporting - who does it apply to? 84 2
- Does SMP and SPP go up if leave goes across 2 tax years? 330 14
- Are agent account managers any good? 103 2
- Is the annual Money Laundering Payment tax allowable 133 1
- Non Resident Landlord Scheme - Penalties 47 3
- Tolley UK sales number 187 6
- VAT registration - which address? 37 1
- Leaving the flat rate scheme 68 2
- Practice Company Secretarial Software recommendations please 220 4
- On line Remote Training 233 7
- Clients 592 11
- Starting new accounting business 160 2
- Group Relief 66 1
- Sage 200 vatable journal? 98 4
- Transfer of stock 245 12
- Can a Directors Pension be paid into a Ltd Company 143 1
- New client procedure 293 4
- Managing deliberate defaulters hmrc 241 2
- Enterprise relief 110 2
- Pre-registration VAT: can you reclaim VATon delivery costs incurred in the six months prior to registration? 183 4
- QROP pension input amounts 488
- HMRC BENCHMARK EXPENSES 467
- write off loan or loan to equity swap or both 435
- EPS and CIS deductions 289
- Sole trade business in UK, but the owner works from EU 281
- Construction CIS LLP Company 272
- Stamp duty on house transfer between spouses 234
- SAGE winforecast 195
- LIVE: Budget aftermath webinar 178
- Overdrawn director account 165