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Do I need to file a P11D?

Do I need to file a P11D?

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Good evening

A director with 50% shareholding doesn't receive a salary from the Ltd co. His travelling and subs costs are paid for directly by the client.

Does he still need to file a nil P11D?

Any advice gratefully received.

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By andy.partridge
14th May 2014 22:12

Nil P11D?
The company will need to file a P11d with numbers or it won't file one at all. Strictly, if he receives travel expenses a P11d should be filed unless the company has a dispensation from HMRC.

You might need to explain the mechanics of his expense claims a bit more.

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Stepurhan
By stepurhan
15th May 2014 09:10

Salary irrelevant

Directors are subject to the benefit in kind rules whether they receive a salary or not. It is only ordinary employees that have to earn £8,500 (including benefits) before it becomes an issue.

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By andy.partridge
15th May 2014 09:55

@ stepurhan

Rereading the OP I am starting to think that the director's company is bypassed completely in the arrangement so that the director does not actually claim expenses from his company, but perhaps the OP can explain.

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Replying to Tornado:
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By Chipette
15th May 2014 10:04

That is correct.

andy.partridge wrote:

Rereading the OP I am starting to think that the director's company is bypassed completely in the arrangement so that the director does not actually claim expenses from his company, but perhaps the OP can explain.

That is correct - the client pays for flights/ subs/ accommodation.  No expenses as such or subs/travel costs go through the ltd co. I guess the director could claim incidental costs and overnight/away from home allowances, as well as out of pocket expenses but he doesn't. He is otherwise employed full time by another company.

 

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Stepurhan
By stepurhan
15th May 2014 10:07

Benefits from third party

Aren't benefits paid by a third party by reason of employment still covered by the benefit in kinds rules? Since it is a client of the company paying this is presumably because the director is doing work on behalf of the company for that client.

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By Chipette
15th May 2014 10:17

Thank you so far for your useful answers.

Thank you so far for your useful answers.

I have 2 questions though

1. How do I calculate the cash benefit since none of the costs are in the ltd co books?

2. Could I have some ideas of where to look into this further?

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