P11D vs Directors Loan account

[dmini]

Ok - something I've picked up off another thread or two.
How many people pay their mileage & other expenses etc through Directors Loan accounts as costs already incurred - and not declaring on P11Ds
Equally - how many people put through stuff as normal expenses, and then do the P11D at the end of the year.

Equally - would an accountant on here like to comment?

[malvolio]

I pay my expenses through the company debit card and don't even think about a P11D...

[Kyajae]

I pay my expenses through the company debit card and don't even think about a P11D...

There is I beleive a mileage limit of £8k per year after which you have to submit a P11D. If you're reimbursing yourself for susbsistence, hotel costs, etc I don't thnk a P11D applies.

[ASB]

Ok - something I've picked up off another thread or two.
How many people pay their mileage & other expenses etc through Directors Loan accounts as costs already incurred - and not declaring on P11Ds
Equally - how many people put through stuff as normal expenses, and then do the P11D at the end of the year.

Equally - would an accountant on here like to comment?

Well, IANAA but whether you happen to book the exes through the DCA or physically reimburse them when claimed makes no difference to the P11D state. A p11d is required for all expenses in excess of a dispensation. [But only if you are a director or the totals is more than 8.5k per year. Dodgy hint: don't be a director, take no salary and 8k worth of miscellaneous dodgy expenses and arguably there is no BIK - but expect a very rough ride is you have any real managerial power (powers of a director and all that)]

[Nixon Williams]

Ok - something I've picked up off another thread or two.
How many people pay their mileage & other expenses etc through Directors Loan accounts as costs already incurred - and not declaring on P11Ds
Equally - how many people put through stuff as normal expenses, and then do the P11D at the end of the year.

Equally - would an accountant on here like to comment?

Mileage no longer has to be reported on the P11d provided you do not pay more than the 40p/25p per mile.

Other expenses must be reported on the P11d (unless you have a dispensation) this would cover things like, accommodation, travel, home office costs, entertaining etc.

It does not matter how the cost was incurred, if the cost was for the benefit of the director then it is reported on the P11d. If the cost was for business then you can claim relief on the tax return so that you are not taxed.

All directors must have a P11d completed and "higher paid" employees (defined as on a salary/benefits in excess of £8500pa).

Alan

[cojak]

My accountant sorts this out for me.

[Sockpuppet]

It does not matter how the cost was incurred, if the cost was for the benefit of the director then it is reported on the P11d. If the cost was for business then you can claim relief on the tax return so that you are not taxed.

Lemme get this straight.

If you pay for a hotel of say 5 nights at £100. This is all bonafide business stuff not a naughty weekend away with the missus.

So you report £500 on the P11D and then tell them its £500 of business expense so you dont pay tax on it?

[philip@wellwoodhoyle]

Lemme get this straight.

If you pay for a hotel of say 5 nights at £100. This is all bonafide business stuff not a naughty weekend away with the missus.

So you report £500 on the P11D and then tell them its £500 of business expense so you dont pay tax on it?

Nearly, you put the £500 on the P11d - there is nowhere on that form to claim it is legitimate deduction - that bit goes on your personal tax return - you put the £500 on page one of the employment section as a payment and then again on page 2 as a legitimate deduction.

[Sockpuppet]

Nearly, you put the £500 on the P11d - there is nowhere on that form to claim it is legitimate deduction - that bit goes on your personal tax return - you put the £500 on page one of the employment section as a payment and then again on page 2 as a legitimate deduction.

I see so the P11D doesnt work out how much tax you pay...that is where I was getting confused as I could find the box for legitimate deductions.