Self Assessment and P11D

[sophieajazz]

I'm filling in my on-line self assessment.

I've totalled the 3 figures from the P11D in the column 'Taxable Payment'.
I've entered this total on the self assessment as taxable income in box 'Expenses payments received and balancing charges'.

My accountant has said all expenses were allowable expenses.

Am I now right to put the expenses incurred in box 17 Employment Expenses 'other expenses and capital allowances' ?

Apologies if this sounds self evident but when I rang HMRC they suggested that as the P11D had entered the amounts under 'Taxable payment' on the P11D I would have to pay tax on it.

[Martin at NixonWilliams]

I'm filling in my on-line self assessment.

I've totalled the 3 figures from the P11D in the column 'Taxable Payment'.
I've entered this total on the self assessment as taxable income in box 'Expenses payments received and balancing charges'.

My accountant has said all expenses were allowable expenses.

Am I now right to put the expenses incurred in box 17 Employment Expenses 'other expenses and capital allowances' ?

Apologies if this sounds self evident but when I rang HMRC they suggested that as the P11D had entered the amounts under 'Taxable payment' on the P11D I would have to pay tax on it.

Hi Sophie,

The expenses you have received should be entered into boxes 9-16 on the employment page, the box numbers should show on your P11d report.

If, as you say, the expenses are not taxable then the amounts should be categorised appropriately in boxes 17-20. The total of these four boxes should be equal to what is included in boxes 9-16, this will ensure there is no tax charge on the expenses.

I hope this helps.

Martin

[sophieajazz]

Many thanks Martin, This is helpful and confirms what I thought needed to be done. It's rather worrying that staff on the help desk at HMRC confused matters.

Hi Sophie,

The expenses you have received should be entered into boxes 9-16 on the employment page, the box numbers should show on your P11d report.

If, as you say, the expenses are not taxable then the amounts should be categorised appropriately in boxes 17-20. The total of these four boxes should be equal to what is included in boxes 9-16, this will ensure there is no tax charge on the expenses.

I hope this helps.

Martin

[ings]

The Box 16 and Box 17 on the online form are the following fields:
16: "Expenses payments received and balancing charges" (enter the amount from the P11D)

17: "Business travel and subsistence expenses" (enter the amount from the P11D)



You must tick both of the following options on the employment section to be able to enter boxes 16 & 17:
"Have you received any taxable benefits and expense payments from <employer>?" (tick yes)
"Do you wish to claim any employment expenses or capital allowances while working for <employer>"? (tick yes)

[TheCyclingProgrammer]

Many thanks Martin, This is helpful and confirms what I thought needed to be done. It's rather worrying that staff on the help desk at HMRC confused matters.

The reason for the confusion is because non-exempt expenses (those declared on your P11D) *are* technically taxable expense payments.

They are then offset by the equivalent amount of tax relief for allowable expenses claimed on your self-assessment.

The good news this double-entry nonsense should be less of a employers no longer need to include many common expenses that would have full tax relief (travel, subsistence etc.) on a P11D so long as they have a system in place for verifying expenses. This is because the previous dispensation system has been replaced with "exemptions":

https://www.gov.uk/employer-reportin.../dispensations

It should mean that many typical contracting companies should be able to avoid P11Ds all together (I assume having an accountant would count as an independent means of checking expenses are allowable and do not need to be reported).