P11D travel expenses + 2yr rule

[moorfield]

I am currently claiming travel expenses within the 2yr rule

How are these treated on the 2008 P11D ie as a taxable benefit?

I'm getting mixed messages from the accountants (again!).

[kirk]

they are allowable expenses.

IANAA
IANAL

I can read HMRC's website and rules.

Next!

[Alan @ BroomeAffinity]

Moorfield, its not surprising that you are getting mixed messages. As usual the regs are ambiguous.

Strictly speaking, if yuo don't have a dispensation for the expenses, you should P11d them. In practice, no tax inspector is going to care as they are genuine expenses and there's no charge to tax. I had a client in this position who had a PAYE compliance visit recently and this was the view taken by the inspector.

If in doubt get a dispensation, though.

[Gonzo]

Moorfield, its not surprising that you are getting mixed messages. As usual the regs are ambiguous.

Strictly speaking, if yuo don't have a dispensation for the expenses, you should P11d them. In practice, no tax inspector is going to care as they are genuine expenses and there's no charge to tax. I had a client in this position who had a PAYE compliance visit recently and this was the view taken by the inspector.

My accountant said pretty much the same thing last year. It was my choice, but a nil P11d was submitted last year.

[rawly]

So, when you put your Business incurred expenses in Box 16 (this is the old Box 1.23), do you then offset it again in Box 17 (old box 1.33) , otherwise the contents of Box 16 just adds to your Tax liability? Or shouldn't non-taxable expenses be in Box 16(Box1.23) at all? This issue is confusing me also after recieving my P11d which have been assigned to category 1.23 (which is now Box 16!)

[moorfield]

So, when you put your Business incurred expenses in Box 16 (this is the old Box 1.23), do you then offset it again in Box 17 (old box 1.33) ,

Assume you're talking about the Self Assessment? Yes, think that is the other way of doing it if your P11D lists a (taxable) benefit and you have no dispensation. Of course it must all be wholly / exclusively business travel etc. etc.

[rawly]

Assume you're talking about the Self Assessment? Yes, think that is the other way of doing it if your P11D lists a (taxable) benefit and you have no dispensation. Of course it must all be wholly / exclusively business travel etc. etc.

Yes indeed. I logged on last night to have a play with the new Form, and I noticed they have changed the Box Numbers on the redesigned form.... I was just getting an idea of how much will be due.

I was just a little unclear on how to Nullify the Tax due for the P11d which are wholly within the 2 Year rule for Business Travel and Subsistence. I assumed you did it the 2nd way I described. (Boxes 16 and 17 both being equal). It's just that the guidelines for Box 16 say "for Permanent workplace", which made me think again, but I don't see any other way of doing it.