Silver Financial

  • Home
  • Services
    • Contractors and consultants
    • Owner managed businesses
    • Finance Director consultancy
    • Incorporation
  • Online accounting
  • About
  • Technical blog
  • Contact
You are here: Home / Owner managed business / P11d dispensations

P11d dispensations

In previous years, a company had to produce a form P11d for directors or employees earning more than £8,500 where they had been provided with a benefit in kind or where the company had made expenses payments to or on behalf of their directors or employees. Where these expenses were incurred wholly, exclusively and necessarily by the director or employee in the performance of their duties no tax charge arose for the individual or the company. In order for the company to avoid having to report these reimbursed expenses on form P11ds they could apply to HMRC for a reporting dispensation.

From 6 April 2016 however, HMRC have abolished the requirement for reporting reimbursed expenses on a P11d for any directors or employees as long as certain measures are in place:

  • The company is required to have in place formal procedures for documenting and approving reimbursed expenses and ensuring that they are incurred wholly, exclusively and necessarily on behalf of the company. And directors and employees are required to keep proof of their expenses in order for the company to check them.
  • The approval should be subject to a review procedure. Where this may not be possible because the company has only one director, that director should ensure that any expenses charged to the company are within HMRC’s guidelines.
Share this:
linkedinlinkedin

Recent posts

  • Budget 2017
  • Autumn statement 2016
  • Tax efficient dividends and salary for directors for 2016/7
  • The Companies House confirmation statement
  • P11d dispensations
  • Budget 2016
  • Charging a business for mobile phone costs
  • Running a limited company

Follow Us

linkedinlinkedin

Our approach

Our philosophy is to keep things simple, talk straight and deliver value added financial solutions, tailored to your needs. We use the latest online accounting technology and take a proactive approach to supporting your business.

Find out more about us.

Technical blog

  • Budget 2017
  • Autumn statement 2016
  • Tax efficient dividends and salary for directors for 2016/7
  • The Companies House confirmation statement
  • P11d dispensations
  • Budget 2016
  • Charging a business for mobile phone costs
  • Running a limited company

Contact

Telephone: 0800 032 9880
Mobile: 07899 405500

Or complete our contact form.

Copyright© 2021 silver financial · all rights reserved · silver financial is a trading name of silver financial management limited · disclaimer · privacy

This site uses cookies More info