P11D if its an allowable expense, but paid by employee

[captainjon]

Hi,

I'm just doing my self assessment and P11D as contractor/director. I personally paid for renting a place while
working away from home. I assume this needs to go onto the P11D, but when I added it, it gave me a big NIC charge.

Can this be fixed in the P11D as an allowable expense with 0 to pay, or does this need to be claimed back in the self assessment form?

thanks
Jon

[Contreras]

Hi,

I'm just doing my self assessment and P11D as contractor/director. I personally paid for renting a place while
working away from home. I assume this needs to go onto the P11D, but when I added it, it gave me a big NIC charge.

Can this be fixed in the P11D as an allowable expense with 0 to pay, or does this need to be claimed back in the self assessment form?

thanks
Jon

Assuming that the rental is secondary accommodation wholly for business use in relation to travel to a temporary workplace ...

On the P11D it should be categorised under travel expenses, not accommodation. There should be no NIC charge on this.

On the SA you copy the numbers from the P11D to the relevant section in the SA, which creates a tax charge. In the next section you declare the same amount as incurred wholly for business, which cancels out the tax. As explained here. There is no tax to pay.

That you paid out-of-pocket and (presumably) were reimbursed by the co. is of no consequence to the above, the filing would be identical had the company paid on your behalf.

P11D deadline was back in July, so it's not clear why you are doing it now. (?)

Btw, the company can apply for a dispensation (P11Dx) which would exempt it from all this.

ps. IANAA. What does yours say?

[captainjon]

Assuming that the rental is secondary accommodation wholly for business use in relation to travel to a temporary workplace ...

On the P11D it should be categorised under travel expenses, not accommodation. There should be no NIC charge on this.

On the SA you copy the numbers from the P11D to the relevant section in the SA, which creates a tax charge. In the next section you declare the same amount as incurred wholly for business, which cancels out the tax. As explained here. There is no tax to pay.

That you paid out-of-pocket and (presumably) were reimbursed by the co. is of no consequence to the above, the filing would be identical had the company paid on your behalf.

P11D deadline was back in July, so it's not clear why you are doing it now. (?)

Btw, the company can apply for a dispensation (P11Dx) which would exempt it from all this.

ps. IANAA. What does yours say?

thanks. My accountant left the self assessment up/paye etc to me and i didnt realize about the deadline.

[TheCyclingProgrammer]

When you did your last payroll submission did you tick the box to say a P11D would be due?

What Contreras said anyway. Box N on your P11D for travel, subsistence and temp accommodation/hotel costs. I suspect you've put it in the box for regular accommodation which does incur a BIK NIC charge.

You have to reclaim this on your self assessment.

If your only expenses are business travel related it's worth applying for a dispensation.

[captainjon]

Assuming that the rental is secondary accommodation wholly for business use in relation to travel to a temporary workplace ...

On the P11D it should be categorised under travel expenses, not accommodation. There should be no NIC charge on this.

On the SA you copy the numbers from the P11D to the relevant section in the SA, which creates a tax charge. In the next section you declare the same amount as incurred wholly for business, which cancels out the tax. As explained here. There is no tax to pay.

That you paid out-of-pocket and (presumably) were reimbursed by the co. is of no consequence to the above, the filing would be identical had the company paid on your behalf.

P11D deadline was back in July, so it's not clear why you are doing it now. (?)

Btw, the company can apply for a dispensation (P11Dx) which would exempt it from all this.

ps. IANAA. What does yours say?

Im using the online p11D form and I cant see travel expenses. the sections are.....

Cars and car fuel

Mileage allowance and passenger payments

Vans and van fuel

Assets transferred (cars, property, precious metals or other assets)

Assets placed at the employee's disposal

Expenses payments made to, or on behalf of, the employee (eg travelling, entertainment)

Interest-free and low interest loans

Living accommodation

Other items (including subscriptions and professional fees)

Payments made on behalf of the employee

Private medical treatment or insurance

Qualifying relocation expenses, payments and benefits

Services supplied

Vouchers or credit cards

And I picked Living accomodation which gave a big NIC charge.

[TheCyclingProgrammer]

Expenses payments made to, or on behalf of, the employee (eg travelling, entertainment)

That is the one you want.

[captainjon]

That is the one you want.

thanks