Parking charges claimed by director/employee

P11D or DLA?

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One of my clients has claimed £6 a day parking charges whilst working away.  He's also claimed for every day of the week!!  For employee it's P11D but would being a director/shareholder allow me to transfer it to DLA and get him to declare a dividend. No receipts to cover so I can't put it to the Company.

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By Mr_awol
22nd Jul 2020 17:05

Are you seeking to disallow it because you don't think he's allowed it, or because he hasn't got a receipt?

What are the circumstances of the 'working away'?

I'd be surprised if it was ever a P11D item - regardless of how it arose, if it is reimbursed charges/claims. If it wasn't parking during allowable 'business travel' for an employee but had been reimbursed, then it would be earnings, Shirley?

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RLI
By lionofludesch
22nd Jul 2020 17:08

Why do you need receipts to charge it to the company ?

Receipts aren't the issue. Whether it's a genuine expense is the issue.

Have you any reason to doubt the director's word ?

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By k3lly89
22nd Jul 2020 21:29

If he was genuinely working away and parking was required to carry out the work then it is surely just an allowable business expense?

If it was parking whilst going out to see his friends at the pub, for example, then I would DLA it, but I don't think from the info above that this is the case?

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By legerman
23rd Jul 2020 10:39

The Company has paid him £10 a day for subsistence and £6 a day for car parking, on a daily basis. I have no quibble with the susbsistence (apart from him claiming 7 days when he only works 5 or 6) but had he simply been an employee the car parking would have have been a taxable item (P11D) I don't doubt his word on the parking though. This is where the waters got muddy for me and why I looked on it from an employee side rather than as a company owner.

If the Company had paid the parking charges direct I don't think I would have quibbled but judging by the replies there shouldn't be an issue here, and I can bung it under travel and subsistence.

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Replying to legerman:
RLI
By lionofludesch
23rd Jul 2020 10:53

legerman wrote:

The Company has paid him £10 a day for subsistence and £6 a day for car parking, on a daily basis. I have no quibble with the susbsistence (apart from him claiming 7 days when he only works 5 or 6) but had he simply been an employee the car parking would have have been a taxable item (P11D) I don't doubt his word on the parking though. This is where the waters got muddy for me and why I looked on it from an employee side rather than as a company owner.

If the Company had paid the parking charges direct I don't think I would have quibbled but judging by the replies there shouldn't be an issue here, and I can bung it under travel and subsistence.

If he's spent £6 a day, that's fine. It's not a benefit in kind.

I'm just sensing that there are still doubts in your mind. Is this a genuine temporary workplace ? He seems to be working there a lot.

Up to a few months ago, I would have agreed on your stance on the seven day subsistence claim but, as HMRC are insisting on working from a calendar day basis, maybe he should be claiming subsistence on the days when he doesn't work - along with his wage.

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Replying to lionofludesch:
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By legerman
24th Jul 2020 10:22

lionofludesch wrote:

legerman wrote:

The Company has paid him £10 a day for subsistence and £6 a day for car parking, on a daily basis. I have no quibble with the susbsistence (apart from him claiming 7 days when he only works 5 or 6) but had he simply been an employee the car parking would have have been a taxable item (P11D) I don't doubt his word on the parking though. This is where the waters got muddy for me and why I looked on it from an employee side rather than as a company owner.

If the Company had paid the parking charges direct I don't think I would have quibbled but judging by the replies there shouldn't be an issue here, and I can bung it under travel and subsistence.

If he's spent £6 a day, that's fine. It's not a benefit in kind.

I'm just sensing that there are still doubts in your mind. Is this a genuine temporary workplace ? He seems to be working there a lot.

Up to a few months ago, I would have agreed on your stance on the seven day subsistence claim but, as HMRC are insisting on working from a calendar day basis, maybe he should be claiming subsistence on the days when he doesn't work - along with his wage.

Thanks Lion, he's currently within the two year temporary workplace rules, no qualms there.

I just wanted to ensure I got it right on the parking, and the pointers given on the thread have helped me. Thank you

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By legerman
01st Feb 2021 11:20

Just as a return to this thread as it has popped up for another client.

Company Director subby away from home for more than 5 hours, was claiming £5 a day subsistence for meals with previous accountant. He's indicated that he would rather buy food from the supermarket and take packed lunches, and this months receipts show food purchased for his pack up (no qualms on actual cost, he hasn't tried to put the weeks shopping on there!!)

I'm thinking a definite no but nothing to back up my thoughts so a/ is this allowable and b/ if not do I need to see receipts if allowing the £5 a day subsistence and c/ providing b/ is allowable should this be on payslip or just as a deduction under subsistence?

I'm pretty good in general on payroll but this is an area where I fall down slightly.

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