AAT Oxford Branch, March 2012, presentation by Mike Evans

1. OXFORD BRANCH P11D
UPDATE
MIKE EVANS
MY CONSULTANCY
14TH March 2012
MY CONSULTANCY

2. INTRODUCTION
• Reporting requirements
• Preparing for P11D Filing
• Exemptions and exclusions
• 2011/12 P11D Changes
• Calculating the cash equivalent
• Future changes for company cars
MY Consultancy

3. REPORTING REQUIREMENTS
• Income tax charged on emoluments of an office or employment
• Income includes salaries, fees, wages taxed through PAYE and
• Perquisites and profits whatsoever, where P11Ds are needed
• „Profit‟ may arise from payment of non-business expenses or if
employees are paid more than the business cost incurred
• Expenses are part of an employee‟s employment income
• Expenses and benefits have to be reported on form P11D
• Unless covered by a P11D dispensation
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4. REPORTING REQUIREMENTS
Form P9D (Rarely used)
• No need to report expenses incurred solely and necessarily in
the performance of the duties and business travelling expenses
• Report other expense payments in excess of £25, including:
• Round sum allowances e.g. mobile phone top ups
• Relocation expenses and benefits
• Any other payments or benefits
• Vouchers and credit cards
• Accommodation benefit
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5. REPORTING REQUIREMENTS
Form P11D
• Report ALL expenses and benefits provided to employees and
directors (or to members of their family or households)
• If provided by virtue of their employment”
• Include costs met directly by the employer
• Reporting not restricted to amounts reimbursed
• Unlike form P9D we cannot exclude expenses solely and
necessarily in the performance of the duties
• Report everything not specifically excluded or covered by a
P11D Dispensation
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6. REPORTING REQUIREMENTS
• P11Ds are required for ALL directors
• Except full time working directors with no material interest
(5% ordinary share capital) and directors of a Charity or
other non-profit making organisation
• P11Ds required for any employee or director earning
at a rate of £8,500 p.a.
• Director includes any person in accordance with
whose instructions the directors are accustomed to act
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7. REPORTING REQUIREMENTS
P11D OR P9D?
• At a rate of £8,500 per annum?
• Emoluments include
• Salaries, fees, wages, bonuses, commissions and other cash pay, plus
• Expenses, before any deductions and
• Benefits in kind
• Emoluments exclude approved pension payments and GAYE
contributions
• Part-time employee earning less than £8,500 per annum will be
P9D
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8. REPORTING REQUIREMENTS
EXAMPLE - New employee started on 3rd January 2012
• Earnings to 5th April 2012 £7,500
• Expenses £ 164
• Medical benefit £ 240
• Total £7,904
• Actual earnings less than £8,500, but
• Annual Rate (12/3 x £7,904) is £31,616
• i.e. over £8,500 per annum
• P11D needed to report the medical benefit and the expenses
• If not covered by a dispensation
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9. REPORTING REQUIREMENTS
• 19 (20) April 2012 Payment of PAYE/NICs on expenses
• 19 May 2012 Submission of EOY PAYE returns
• 6 July 2012 submission of:
• P11Ds, P9Ds and P11D (b)
• 19 (20) July 2012 for payment of:
• Class 1A NICs on taxable benefits in kind
• 19 (22) October 2012 for payment of:
• Income tax and Class 1B NICs on 2011/12 PAYE Settlement Agreement
(PSA)
• Cheques to reach HMRC by 19th and
• Cleared payments to reach HMRC‟s bank account by 22 July or October
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10. MY Consultancy

11. PREPARING FOR P11D FILING
• How are the P11D returns to be submitted
• Paper forms or electronic submission?
• HMRC‟s Basic PAYE Tools (Print and file, not online)
• HMRC 'Online Return and Forms - PAYE' service ?
• P11D Software?
• Online P11D filing is optional, not statutory
• P11D software saves time and reduces errors
• Paper returns for back up, last minute filing or
amendments
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12. PREPARING FOR P11D FILING
• Who is taking responsibility for the task?
• Preparing/completing the returns?
• Technical check/proof reading?
• Submitting the returns to HMRC?
• Make that decision and agree a timetable
• To provide the information if outsourcing
• To submit the returns to HMRC
• To meet the statutory deadlines
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13. PREPARING FOR P11D FILING
• What information do we need to complete the P11D returns?
• What expenses and/or benefits were reported last year?
• Review the P11D and/or Tax file
• Set up a permanent file if necessary
• Is there a registered PAYE Settlement Agreement?
• Note items to be excluded from P11D reporting
• Check the terms of any P11D dispensation
• Note which items HMRC has agreed can be excluded from P11D
reporting and that any conditions have been satisfied
• Is the P11D Dispensation still valid?
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14. PREPARING FOR P11D FILING
Contact anyone you need information from
• Payroll Department or Bureau for deductions from salary
• Loan repayments, medical insurance contributions etc.
• List of employees earning at a rate of £8,500
• Human Resources
• Details of new benefits & Relocations
• Finance Department
• Cost details of expenses and benefits
• Fleet manager or Leasing Company
• Company car/fuel details
• Anyone else?
• Relocation company or Medical Insurance provider?
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15. EXEMPTIONS AND EXCLUSIONS
• Expenses covered by a P11D dispensation
• Business travel and subsistence,
• Business entertaining
• Professional subscriptions
• Other items specific to the employment
• Taxable expense payments or benefits included in a PSA
• Staff entertaining
• Taxable travel
• Included in a Taxed Award Scheme
• Normally third party incentives/awards
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16. EXEMPTIONS AND EXCLUSIONS
• Exempt expenses and benefits
• Car, motor cycle, bicycle parking at or near the place of work
• Modest private use of heavy goods vehicles
• Incidental overnight expenses
• Works transport Services
• Support for public bus services
• Travelling and subsistence during public transport strikes
• Transport between work and home for disabled employees
• Late night taxis from work to home
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17. LATE NIGHT TAXIS
• Limited exemption for transport from work to home
• Employees required to work later than usual (at least until 9.00 pm)
• Late working must be irregular (not infrequent)
• Public transport ceased or unreasonable to use it
• Limit of 60 journeys per annum (excess taxable)
• Expected abolition of exemption will not proceed!
• Abolition would impact on vulnerable groups
• Abolition would increase administration
• Going against the aim of tax simplification
• Remember! HMRC requires detailed records to be kept to
justify any claims for deduction or exemption
Tim Buss and Mike Evans for Quorum
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18. LUNCHEON VOUCHERS
TAX RELIEF
• Tax and NICs exemption on 15p per working day!
• Meal voucher provided by employer to an employee
• Excess above 15 p liable to tax and NICs
• Relief introduced in 1946 when food rationing was in place to
help individuals afford healthy meals!
• Benefit of the relief almost entirely eroded by inflation
• Low in value and no longer achieves a clear objective
• Relief will cease to be available for luncheon vouchers
provided on or after 6 April 2013
• NICs exemption repealed from the same date
• Cycle to work meals exemption also scrapped
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19. EXEMPTIONS AND EXCLUSIONS
• Small gifts such as flowers for births, marriage
• But not if a thank you or a reward
• Seasonal gifts such as a turkey, box of
chocolates or ordinary bottle or two of wine
• Not an expensive hamper or case of wine
• If not trivial in amount!
• Free coffee/tea/water available to all
• Tax free if not available to all on minor & trivial grounds
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20. MY Consultancy

21. 2011/12 P11D CHANGES
• Only the tax year has changed, to 2011/12
• Still an A to N, Assets transferred to Section N, Expenses
• HMRC expected to take a tougher line on the P11D Quality
Standard – warning letters issued last year
• Section D, Living accommodation, official rate of interest
remained at 4% and note for Section H, beneficial loans
• Section E, Authorised Mileage rate increased to 45p for first
10,000 business miles from 6 April 2011
• Section F changes to the car benefit rules – next slide
• Section M, Changes on childcare exemption
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22. CALCULATING THE CASH
EQUIVALENT
Cash
Equivalent
?
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23. HMRC GUIDANCE
• CWG5 (Class 1A NICs)
• Appendix 1, Common Benefits
• 480 Expenses and Benefits
• 27 Chapters and 11 Appendices of advice
• Chapter 5 for non-taxable payments and benefits
• P11D Guide
• 490 Employee travel
• CWG2 Employer further guide to PAYE and NICs
• Chapter 5 guidance on when PAYE/NICs due
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24. MY Consultancy

25. HMRC GUIDANCE
• P11D working sheets to help calculate the cash
equivalent of the following benefits in kind:
1. Living accommodation
2. Car and fuel benefits
3. Company vans
4. Interest free loans
5. Relocation expenses and benefits
6. Mileage allowance and passenger payments
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26. EXPENSES AND BENEFITS A to Z
• http://www.hmrc.gov.uk/paye/exb/
• Expenses and benefits: W
• Workplace nursery
• Water rates or charges for living accommodation
• Welfare counselling
• Working from home - office equipment and supplies
• Works bus services
• Workshop equipment and supplies
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27. CALCULATING THE CASH
EQUIVALENT
Amount paid by employer (or third party) on
employee‟s behalf
Matches entry on tax returns
15
15 1A
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28. CALCULATING THE CASH
EQUIVALENT
• P11D employee or director
• Cost to employer
• Or any third party provider!
• P9D employee
• Second hand value
• N.B. There are some exceptions
• Company car and fuel benefits
• Company van benefits
• Living accommodation
• Vouchers
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29. VAT
ALL EXPENSE PAYMENTS
AND BENEFITS IN KIND MUST
BE REPORTED ON THE P9D
OR P11D ON A VAT
INCLUSIVE BASIS
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30. MAKING GOOD
Section 203(2) ITEPA 2003
• The legislation does not set a time limit on the "making good".
This will usually happen shortly after the expense is incurred
by the person providing the benefit. But you need not object to
a belated "making good" if it is done within a reasonable time
of the employee becoming aware that the chargeable benefit
can be reduced, in whole or in part, by reimbursing the
expense incurred by the provider.
What constitutes a "reasonable time" will depend on the facts
of the case. Do not allow a deduction for "making good" which
takes place after a charge to tax on the benefit concerned has
become final and conclusive.
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31. 1A
A. ASSETS TRANSFERRED
• Have any company owned cars been sold or given to a director
or employee?
• Was the price paid the market value and can you prove that?
• Any other assets sold or given to a director or employee?
• Painting
• Clothes
• Office equipment
• Bicycles?
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32. C. VOUCHERS AND CREDIT CARDS
• Report value of vouchers and credit card payments
• Report expenses etc. using credit cards or tokens, but
• ONLY amounts not reported elsewhere
• Section M or N?
• Taxable Childcare vouchers reported here
• Taxable Childcare (Employer Contracted) Section M
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33. E. MILEAGE ALLOWANCE AND
PASSENGER PAYMENTS
VEHICLE FIRST 10,000 BUSINESS EXCESS OVER 10,000
MILES BUSINESS MILES
CARS 45p 25p
MOTOR 24p 24p
CYCLES
CYCLES 20p 20p
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34. APPROVED MILEAGE PAYMENTS
EMPLOYEE CARS
• Have employees kept cumulative business mileage claims and
was the 45p rate reduced to 25p after 10,000 miles?
Example
• Christine was reimbursed 45p for all business mileage
• Christine claimed 14,808 business miles
• Reportable excess is 4,808 x 25p = £1,202
• £1,202 excess to be reported at P11D Section E
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35. APPROVED MILEAGE PAYMENTS
EMPLOYEE CARS
• If an employer reimburses less than the AMAP rate
• Employees can claim additional tax relief
• Employees can claim the „difference‟ between the
amount reimbursed and the authorised amount
• Example – Employer reimburses 25p per mile
• Employee can claim the additional tax relief due at
20p per mile up to the 10,000 business miles limit
• Claim 8,285 miles @ 20p (45p - 25p) = £1,657.00
• Tax claim @ 20% = £331.40
• Tax claim @ 40% = £662.80
• Tax claim @ 50% = £828.50
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36. 1A
F. CARS (9) AND CAR FUEL (10)
• The information to be reported is:
• Make and model of the company car
• Date the car was first registered
• Approved CO2 emissions figures [g/km]
• www.vca.gov.uk
• www.smmt.co.uk
• Engine size [cc]
• Type of fuel/power used [?]
• Dates car was available
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37. SECTION F
CAR BENEFIT CHANGES
• There will only be three letters to describe cars
• E for electric only cars (as before)
• D for all diesels (previously types D and L), and
• A for all other types (previously types H, B, C, G & P)
• There will no longer be any reductions for alternative
fuels
• The diesel surcharge will apply to all diesels,
whenever registered
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38. FUEL POWER KEY
Type of fuel P11D Code Adjustment
Zero emission cars None
E
(including electric
cars)
Diesel cars 3% supplement,
D subject to 35%
(all Euro standards)
maximum
All others, including None
Hybrid diesels
A
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39. SECTION F
CAR BENEFIT CHANGES
• The £80,000 limit for the price of a car for car benefit purposes
no longer applies (from 2011/12)
• Expensive cars will now be taxed at their full List Price
Example
• 2010/11 List Price £120,000, assume 35% CO2
• Car benefit price capped at, £80,000 x 35% = £28,000 benefit
• 2011/12 List Price £120,000, assume 35% CO2
• Car benefit on List Price of £120,000 x 35% = £42,000 benefit
• Exclusion of certain security related costs!
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40. SECTION F COMPANY
CAR BENEFIT CHANGES
• Lower CO2 threshold (15% rate) reduced from:
• 130g/km to 125g/km
• Lowest appropriate percentage is 0 per cent
• Applies to cars with CO2 emissions of zero
• Cars with CO2 emissions of less than 75g/km have an
appropriate percentage of 5 per cent
• Cars with CO2 emissions of 76g/km to 120g/km have an
appropriate percentage of 10 per cent
• Thereafter the rate is 15 per cent increasing by 1 per cent for
every 5 g/km to the current maximum of 35 per cent
• Emissions of 225g/km and above
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41. 1A
F. CARS (9) AND CAR FUEL (10)
• Only use boxes when cars first provided or cease to
be provided, or
• Where there is a change of car in the tax year
• Car unavailable before it is first provided
• Car unavailable after it is withdrawn
• Car treated as unavailable if the car is unavailable for
periods of 30 consecutive days or more
• Car not treated as unavailable if employee is:
• banned from driving, or
• out of the country on business or holiday, or
• unable to drive the car for another reason e.g. illness
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42. 06 04 11 10 06 11 11 06 11 05 04 12
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43. 1A
F. CARS (9) AND CAR FUEL (10)
• The list price is the inclusive price published by the
manufacturer, importer or distributor if sold singly in a retail sale
in the open market in the UK on the day before the date of the
car’s first registration
• List price includes:
• VAT, car tax, customs or excise duties and delivery charges
• List price excludes:
• New car registration fee (admin charge)
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44. 1A
F. CARS (9) AND CAR FUEL (10)
• List price of each company car
• Including standard accessories, plus
• List price of all non-standard accessories
• Ignore later provided accessories if cost below £100 e.g.
mud flaps
• List price probably not the price paid for the car
• Ignore discounts and second hand price
• Use manual price for automatic car provided to a disabled
employee
• Booklet 480, paragraph 12.7
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45. 1A
1,450 600
• Capital contributions reduce the list price of the car for
employee making the contribution
• Up to a maximum of £5,000
• Might be paid for accessories e.g. tow bar
• Not transferable to different employee
• Private use contributions reduce the company car benefit on a
£1 for £1 basis
• There must be a requirement to make payments as a condition of the car being
available for private use, and
• Payments must be specifically for that private use
• Payments for supplies or services e.g. petrol or insurance
• Do not qualify as private use contributions
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46. 1A
F. CAR FUEL SCALE CHARGE (10)
• A car fuel benefit charge will apply if any fuel is provided for a
company car, Unless:
• The employee is required to and does make good the full
cost of any private fuel, or
• Fuel is only made available for business mileage and that
can be proven!
• Employees can make good the cost of ALL private fuel by
payment or reinstatement, but
• Employers may have to prove to HMRC that procedures have
been in place to ensure that no „free fuel‟ has been provided
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47. SECTION F COMPANY CAR
FUEL BENEFIT CHANGES
• The company car fuel benefit multiplier has
increased from £18,000 to £18,800
• The maximum car fuel benefit has increased from:
• £18,000 x 35% = £6,300, to
• £18,800 x 35% = £6,580
• Further increases likely
• Even more important to check value of „free fuel,‟
and
• Avoid „accidental‟ fuel scale charges
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48. HMRC TARGETS
• Employment Status and Casual Labour
• Fuel scale charges
• Home to work travel
• Long service/retirement awards
• Salary Sacrifice Schemes
• Share Schemes
• Staff entertaining
• Termination Payments
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49. FUEL SCALE CHARGES
Company Car Fuel Scale Charges
• An HMRC spokesman commented: “Employers should have
appropriate systems in place to verify that any business
mileage claims made by their employees can be paid free of
tax. Should such claims turn out to be false, both the employer
and employee may be liable to action taken by HMRC.”
• Recent research revealed that 72 per cent of respondents
suspect that their drivers overestimate mileage claims on a
regular basis. This is coupled with the revelation that only 50
per cent of firms routinely double check the accuracy of
claims. More than one in 10 believe that the practice of
inflating mileage is routine
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50. FUEL SCALE CHARGES
Company Car Fuel Scale Charges
• Avoiding a fuel scale charge means not providing „free fuel‟
• Intentionally or unintentionally!
• Business mileage recording is the first point to address
• If the employer ensures that proper mileage records are
maintained and checks them?
• Next we must ensure that the correct amount of fuel is provided
• Using HMRC‟s Advisory Fuel Rates is the „safe bet!‟
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51. ADVISORY FUEL RATES
Company Cars
• HMRC Guidance on fuel rates for company car drivers
• Not relevant to Vans or employee own cars
• AFR‟s can either be used for:
• Reimbursing employee business mileage, or
• Recovering employee private fuel costs
• AFR‟s based on average fuel costs and only „advisory‟ rates
• Employers may have to justify the use of different rates
• Higher reimbursement or lower recovery
• Have these rates been used in 2011/12 to avoid any liability?
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52. ADVISORY FUEL RATES
March 2012 - Dec - Sept – June - March 2011
Engine Size Petrol Diesel LPG
135.2p - 128.9p 143.2p - 134p 74.1p - 76.5p
1,400 cc or less 15p 15p 15p 15p 14p 13p 12p 12p 12p 13p 10p 10p 11p 11p 10p
+ 2p + 1p
1,600 cc or less 0p
for diesel cars
1,401 - 2,000 cc 18p 18p 18p 18p 16p 15p 15p 15p 15p 13p 12p 12p 12p 13p 12p
1,601 - 2,000 cc + 2p + 2p + 1p
for diesel cars
Over 2,000 26p 26p 26p 26p 23p 19p 18p 18p 18p 16p 18p 18p 18p 18p 17p
+ 1p
cc + 3p + 3p
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53. ADVISORY FUEL RATES
• Employers should check that the amount recovered
from their employees was sufficient to cover the full
cost of any and all private fuel in their company cars
• If the answer is no, or if there is any doubt?
• There may be a liability to PAYE & NIC, but only on
the excess rate for genuine business mileage, But
• There may be a P11D car fuel scale charge to report
on the private fuel for non-business mileage
• Employers need to monitor the AFR changes, but first
• Employers should insist on accurate mileage records
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54. NIC MILEAGE RATES
NIC - rates per business mile
Type of Vehicle Every business mile
CARS and VANS 45p
MOTOR CYCLES 24p
BICYCLES 20p
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55. NIC MILEAGE RATES
Example
John claims 12,250 bus miles @ 45p = £5,512.50
Authorised amount: 10,000 miles @ 45p = £4,500.00
Balance 2,250 miles @ 25P = £ 562.50
= £5,062.50
Excess to report Section E form P11D = £ 450.00
• The NICs QA is 45p for every mile, therefore No NICs due
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56. 1A
G. VANS (9)
• Report total cash equivalent of all vans made available
• Van means:
• A vehicle of a construction primarily suited for the conveyance of goods
or burden of any description (this does not include people)
• with a design weight not exceeding 3,500 kilograms
• Double cab pick ups are a potential problem?
• Classification as car or van dependent on VAT treatment
• Payload 1 tonne (1,000 kg) or more accepted as van - double cab pick ups only
• Two door vehicles of this type normally accepted as van
• Some vans may be adapted and become cars
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57. 1A
G. VANS (9)
• The charge will be Nil if both the following requirements are
satisfied throughout the year (or part of the year on when the
van is available to the employee):
• Must only be available for business travel and commuting
and must not be used for any other private purpose except
to an insignificant extent
• Must be available mainly for use for the employee‟s
business travel
• If both the above requirements are not met the company van
benefit charge for 2011/12 is £3,000
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58. 1A
G. VANS (9)
MEANING OF INSIGNIFICANT?
• No definition so we must use its ordinary meaning
• Too small or unimportant to be worth consideration
• Private use considered „insignificant‟ if it is:
• insignificant in quantity in the tax year (few days at most)
• insignificant in quality (week private use not insignificant)
• intermittent and irregular
• the exception in the pattern of use of that van by that employee (or their family or
household) in that tax year
• Examples of insignificant private use of a van:
• takes an old mattress/rubbish to the tip once or twice a year
• regularly makes slight detour to stop at newsagent on the way to work
• calls at the dentist on his way home
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59. 1A
COMPANY VAN FUEL CHARGE (10)
• The Van fuel charge will not apply if fuel is made
available only for business travel
• Is there evidence to confirm this?
• The Van fuel charge will not apply if the employee
makes good the full cost of any and all fuel provided
for private use
• The Van fuel charge will not apply if the provision of
the company van is not taxed as a benefit in kind
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60. 1A
POOL CARS (9) & VANS (9&10)
• Car/Van only qualifies as a pool car if all the following
conditions are satisfied (Chapter 15, 480):
• Available to and actually used by more than one employee
• Made available by reason of their employment
• Not ordinarily used by one of them to the exclusion of the
others
• Any private use is merely incidental to the business use, and
• It is not normally kept overnight on or near the residence of
any of the employees unless on premises occupied by the
provider of the car
• Is there a log and control of the use of pool vehicles?
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61. 1A
I. PRIVATE MEDICAL INSURANCE (11)
• Report the cost of all medical and dental expenses or insurance
premiums where the liability is the employers
• Report at Section B if costs or premiums incurred by employee
• Has employer paid the excess for claims made by employees?
• No liability or reporting for:
• Costs related to overseas duties
• Costs related to work related injuries or diseases
• Periodic medical screening or health checks
• Eye tests and glasses required for work use by computer and VDU
screen users
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62. WS5 1A
J. QUALIFYING RELOCATION (11)
EXPENSES PAYMENTS AND BENEFITS
• Report only the excess over £8,000 of all qualifying expense
payments, benefits and provided accommodation
• Qualifying expense payments and benefits are those that are
exempt e.g. Costs of selling, purchase and removal
• Costs to be paid by the relevant day
• 12 months after the end of the year of assessment in which the
employee relocated
• Relocated May 2011, time limit 5 April 2013
• Tax relief limit of only £8,000
• Per relocation, not per annum
• What costs were incurred in the previous tax year?
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63. 1A?
M. OTHER ITEMS
• Dual choice section for any other benefits in kind
• HMRC‟s P11D guide tells us to enter the following
items in the brown box:
• Subscriptions, educational assistance, non-qualifying
relocation benefits and expenses payments, incidental
overnight expenses and other benefits where the contract is
between the employer and the supplier
• Other items to report here include car/van fuel for private
cars/vans, car parking, Christmas boxes, clothing, staff
entertaining/social functions, holidays, meals, non exempt
training costs
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64. CHILDCARE CHANGES
FROM 6 APRIL 2011
• Tax relief restricted to basic rate for new members
• Joining the scheme after 5 April 2011
• Full tax relief for members of the scheme as at 5 April 2011
• Basic rate (20%), Higher Rate (40%) or Additional Rate (50%)
• Higher rate new scheme members get relief on £28
• Report excess, say 52 weeks @ £27 = £1,404
• Additional rate new scheme members get relief on £22
• Report excess, say 52 weeks @ £33 = £1,716
• Amounts are reported here when the Employer contracts with
the provider of the childcare
• Childcare vouchers reported at Section M, Blue
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65. M. OTHER ITEMS
• HMRC‟s P11D guide tells us to in enter the blue box:
• Employer provided childcare, if not exempt and
• income tax paid to the Accounts Office in the year that the
company failed to deduct the tax from the director‟s
remuneration.
• Loans written off, personal mobile phone costs, non-exempt
training costs
• Report non-qualifying relocation expense payments or
benefits that were exempt but exceeded the exempt limit
• Report clothing (not uniform) provided for employees use
• Report incidental overnight expenses over £5 (UK) £10 (OUK)
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66. N. EXPENSES PAYMENTS
• Do not report expenses included in a dispensation
• Do not report amounts in C, vouchers and credit cards
• Otherwise report here:
• Travel and subsistence
• Entertainment
• General expenses allowance
• Payments for use of home telephone
• Non-qualifying relocation expenses
• Other expenses
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67. N. EXPENSES PAYMENTS
• Report all business entertaining costs here
• If carrying on a trade, profession or vocation, tick the
box if any of the expenses have or will be disallowed
• Put a X in the box if no disallowance
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68. N. EXPENSES PAYMENTS
6,829 6,829
15,682 15,682
629 629
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69. POTENTIAL P11D FAILURES
• Failure to report any or all expenses or benefits
• Pool cars and vans that are taxable
• Long service awards (not exempt) and other awards or
incentives
• Failure to include VAT/full cost of taxable expenses or benefits
• Company car list prices/CO2 emission figures wrong
• Assets sold below market value and not reported
• Home to work reimbursement (P11D or PAYE/NIC?)
• Taxable staff entertaining, meals, functions etc.
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70. P11D DISPENSATIONS
• P11D Dispensations reduce end of year reporting
• Excludes reporting on form P11D, P9D and tax returns
• Expense payments and some benefits in kind e.g.:
• Qualifying travel and subsistence expenses
• Business Entertaining expenses
• Subscriptions to professional bodies
• Apply in writing (P11DX) or online
• Still time to apply for 2011/12
MY Consultancy

71. MY Consultancy

72. DISPENSATIONS BY POST
• Download form P11DX from HMRC‟s website, or
• Your Employer CD-ROM???
Send to:
Employer Support Team
HMRC, Bowback House
299 Silbury Boulevard
Witan Gate West
Milton Keynes
Bucks
MK9 1NG
MY Consultancy

73. SECTION F COMPANY
CAR BENEFIT CHANGES
Changes from 2012-13
• Special rules for QUALECs (qualifying low emissions cars) with
CO2 emissions not exceeding exactly 120g/km to be abolished
• Lower CO2 threshold to be reduced from 125g/km to 120g/km
• Lowest appropriate percentages are still 0% and 5% but 10% will
only apply to cars up to an emission level of 99g/km
• From 100g/km the rate is11% per cent and rises by 1% for every
5g/km to the current maximum of 35% (emissions of 220g/km)
MY Consultancy

74. SECTION F COMPANY
CAR BENEFIT CHANGES
• Changes from 2013-14
• Lower threshold will be reduced from 120g/km to 115g/km
• Lowest appropriate percentages still 0% and 5%
• 10% will apply to cars with CO2 emissions of 76g/km to 94g/km
• Appropriate percentage will increase by 1% for all vehicles with
CO2 emissions between 95g/km and 215g/km (maximum 35%)
• Changes from 2015-16
• Appropriate percentage for zero emission cars reverts to 9%
unless this figure is changed in any future announcement
• Special rules for cars with CO2 emissions not exceeding exactly
75g/km will be abolished
MY Consultancy

75. WITHDRAWAL OF P11D (b)
LATE FILING CONCESSION
• HMRC has announced that it will withdraw the
concession whereby it does not issue penalties for late
filing of P11D (b) returns provided they are received
by 19 July following the end of the tax year
• HMRC will withdraw this concession from:
• 31 March 2013
• P11D (b) returns filed after that date must be
submitted by the 6 July statutory deadline
• This change does not affect 2011/12 P11D (b) returns
MY Consultancy

76. OXFORD BRANCH P11D
UPDATE
MIKE EVANS
MY CONSULTANCY
14TH March 2012
MY CONSULTANCY