A friend is having an issue with her tax return / accountant and I'm not sure if the accountant is wrong or her work is wrong.
The friend buys office supplies for the company they work for, they also travel to clients so they get £ for her petrol to get to her clients, she also does some client enterainment. On her P11D I see,
-Travel and Subsistence
-Entertainment
Non of these are for the employees benefit they are all expenses they incurred performing there job, now I believe even though they are on the P11D, when the tax return was completed you could enter it in 2 boxes and it would offset so no tax incurred, however the first time the accountant did the return they did not do this and it showed tax owing as a result. She point out to her accountant this issue and they just came back and said "its on the P11D if they are company expenses they shouldnt be there and the P11D needs amending", which I thought was wrong, I stated it needs to be put on twice to offset but rather than doing that the next return they sent they totally removed the expenses, which I know will be an issue as the P11D wont match her return.
Is the accountant wrong in this case or is it the fact her employer has submitted the P11D with the expenses under Travel and Subsistence, Entertainment thats the issue and the P11D needs adjusting ?
The friend buys office supplies for the company they work for, they also travel to clients so they get £ for her petrol to get to her clients, she also does some client enterainment. On her P11D I see,
-Travel and Subsistence
-Entertainment
Non of these are for the employees benefit they are all expenses they incurred performing there job, now I believe even though they are on the P11D, when the tax return was completed you could enter it in 2 boxes and it would offset so no tax incurred, however the first time the accountant did the return they did not do this and it showed tax owing as a result. She point out to her accountant this issue and they just came back and said "its on the P11D if they are company expenses they shouldnt be there and the P11D needs amending", which I thought was wrong, I stated it needs to be put on twice to offset but rather than doing that the next return they sent they totally removed the expenses, which I know will be an issue as the P11D wont match her return.
Is the accountant wrong in this case or is it the fact her employer has submitted the P11D with the expenses under Travel and Subsistence, Entertainment thats the issue and the P11D needs adjusting ?
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