A director has booked a hotel using a company credit for himself, another director and an employee purely for business purposes, (they will be attending an exhibition for three days). We hold a dispensation for such costs for employees but not directors. What is the correct way to deal with this as in my mind I have several possible ways:
1) Do I simply record the full amount spent by the Director on his P11D as he booked/incurred the cost and then he claims back the full amount on his self assessment?
2) Do I have to also record an amount (a third on the expense/benefit) for the director that occupied one of the rooms but didn't book it incur the charge directly himself?
3) Do I record only a third on each of the Director's P11D being their portion of the expense/benefit only?
4) Something else?
Many thanks in advance.
Replies (2)
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3) but why doesn't the dispensation cover Directors, what is the point of it?
There are others who will say do nothing (since no loss of tax and rules changing) but I personally disagree.
Agree
Yes, should go on the directors' returns.
But - Jeez - what a waste of everyone's time it is.