Expenses and P11D submission

[ceejay007]

Sure thing.

Thanks Clare

[TheCyclingProgrammer]

The entertainment should go on the P11d, as should the train fare. Just ignore the mileage.

If by entertainment the OP means his annual company party would he be able to exclude those costs if they meet the rules for colony's annual events?

[Contreras]

If by entertainment the OP means his annual company party would he be able to exclude those costs if they meet the rules for company's annual events?

I was wondering that too.

Also not so sure about this (the bolded part):

What exactly were the expenses? If it's things that the business was liable for and you just paid for, then it wouldn't need to go on the P11D anyway (such as booking a hotel room).

My understanding is that all travel expenses (other than statutory allowances) must go on the P11D. And, according to the HMRC guidance, this is the same whether it was paid out-out-pocket and reclaimed or paid direct by the company.

Could the OP just treat the £2k as a (taxable) dividend, register the company for PAYE, and then pay the expenses in the following company year? Since no benefit is received in the first year then no P11D is due? That would seem preferable to flagging up a potential PAYE irregularity, IMHO.

[TheCyclingProgrammer]

Clare's underlying point, that company expenses (i.e. invoice is in the company name) that an employee has paid for can normally be reimbursed without it having to go on the P11D. Equipment is a good example. That said, it's still better to keep hese things separate whenever possible and pay for company expenses using the company card.

The example wasn't necessarily the best though because like you say, subsistence and accommodation related to business travel is normally reportable no matter what the payment arrangement was, unless you have a dispensation, as far as I can tell from the HMRC guides.

Having said that, I'm pretty sure I've neglected to include hotel bookings I've made directly through MyCo on the P11D before. It's not the end of the world.