Quick P11D question

Quick P11D question

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A company pays the medical insurance for a director.
The director prefers not to incur a benefit in kind and therefore makes good the whole of the cost.
The whole of that reimbursement is achieved by debiting the payment direct to the director's current account (which is always in credit).

So far so good.  I am satisfied that there is no taxable benefit.

The company also wishes to avoid the aggravation of declaring such amounts on form P11D, as well as other non-taxable reimbursed business expenses, and so is in the process of preparing a dispensation application P11DX.

Question 1:  In the absence of a dispensation, is there any P11D reporting requirement anyway in respect of the above?

Question 2:  If there is (absent a dispensation) a reporting requirement, can such transactions be covered by a dispensation?  They are not reimbursements by the employer of expenses incurred by the employee, but are rather reimbursements by the employee of benefits incurred by the employer.

Thanks

With kind regards

Clint Westwood

Replies (3)

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By User deleted
06th Sep 2014 18:14

Regulation 85 requires a P11d form to be filed every year. However, by virtue of reg 86(1)(b) I would think that there is no need for this payment to be included on P11d

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By johngroganjga
06th Sep 2014 18:16

I think strictly speaking (in the absence of a dispensation of course) the premium goes on the P11D but there is then a deduction of 100% of it made good by the employee.

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By Steve Kesby
07th Sep 2014 13:40

There is no taxable benefit

The amount of the benefit, under ITEPA 2003, s. 203, that would have to be reported on the P11D, is the "cash equivalent".

S. 203 says that the cash equivalent is the cost of providing the benefit less any amount made good.

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