We have a number of small owner managed companies who pay for a number of expenses personally which are incurred wholly, exclusively and necessarily on behalf of the company and do not attract a tax or NI liability. Expenses for example are telephone calls, stationery, stock etc.
In practice, is it necessary to fill in the P11D? What is the view of HMRC of not filling in the form, if they became aware of it in an enquiry?
Any experiences with this situation gratefully received.
Replies (6)
Please login or register to join the discussion.
Dispensation, but
A dispensation would solve your problem going forward, but as a general rule HMRC do not back date dispensation applications to cover earlier years. So for example if you apply today it will cover the 2011/12 tax year onwards.
Technically for earlier years which are affected forms P11D should be prepared along with an appropiate section 336 claim. In answer to your question I have never seen a penalty leived for failure to file a P11D where there are no tax/NI liabilities. However in my recent experience HMRC seem more keen than ever to impose penalties where ever they can.
My advice would be get the clients to dig the information out for you and prepare the P11Ds, but in the mean time apply for dispensations. It is really worth the hassle should HMRC pick up on this.
Certain expenses
Remember that dispensations only relate to certain expenses so you have to review the expenses for non-dispensation items.
Benefit or expenses?
"If the benefit is provided elsewhere than the employer's premises"
Why is it a benefit? I would have thought these were expenses.