Ken Voller Tax Business Salt Mill Barn Old Salisbury Lane Romsey SO51 0GD
Registered as a Fellow with the Association of Taxation Technicians as a member in practice
2011/12 Forms P11D Guidance for Consideration of Declaration of Expenses and Benefits
*
1)
Increasingly, declarations are being filed electronically, either using H M Revenue & Customs (HMRC) or third-party software. Due to this, and the push towards ‘Electronic by Default’, I am no longer providing copies of forms within this guide, nor will I refer to a particular section of the form. However, the principles for completion remain the same as they have for many years.
2)
Forms P11D are required for Employees paid at a rate of £8,500 or more per annum, and Directors*. HMRC’s initial guidance to P11Ds can be found here http://www.hmrc.gov.uk/guidance/p11dguide.pdf
3)
As indicated above, I am no longer indicating the appropriate section of the form P11D for the item under consideration. However, I will continue to indicate a likely charge to Class 1A National Insurance Contributions (NIC) that may be payable to HMRC for items marked “1A”. Certain items may already be chargeable to NIC under another Class and great care must be taken when considering the items for NIC purposes.
4)
This guide, although extensive, should not be regarded as an exhaustive list of all expenses/benefits to be declared. Circumstances between Directors/employees vary greatly, and it is the responsibility of all employers/company officers to consider each case carefully and ensure returns are fully and accurately completed.
5)
Further information is available from Booklet 480 that is contained on HMRC’s website at www.hmrc.gov.uk/guidance/2012/480.pdf I have included other website links where available
6)
Claims for genuine business expenses will have to be made by the employees/directors personally, so that, when completing forms P11D, business and personal expenses should be separately identified. In most circumstances a “Dispensation” should be requested using form P11DX and, if granted, will reduce the annual compliance work. It is strongly recommended that Dispensations are sought wherever possible.
8)
Please call Ken Voller, on 0845 130 6380 if you have any specific queries concerning benefits, expenses or the completion of forms P11D. Ken also deals with employment Tax/NIC and PAYE matters generally.
Including “Shadow” directors under S67 ITEPA 2003 – this is any person in accordance with whose instructions the directors are accustomed to act (other than a person who is merely a professional adviser)
Tel: 0835 130 6380
Mobile: 07914 762 375
e-mail: ken@tax-business.co.uk
Tax Business is the trading name of Tax Business Ltd, a Limited Company – Registration number 07496432. The Registered Office is indicated above