Expenses - company card or own cost and claim?

[malvolio]

IMV that still has to go on P11D if you take a strict interpretation of the rules:



That said my experience over c10k P11D returns and a 0% query rate is that HMRC don't worry about reporting of clearly deductible items be they paid on private or business card, with or without dispensation: there's no tax lost so why would they?

I saw today that the Office of Tax Simplification has recommended along the same lines recently.

Precisely. My accountant and two others have said the same thing; it's a zero sum so while the rules are clear, nobody is going to worry about it as long as you stick to pure business expenses only. I've never seen the logic in spending my money on company business.

[Contreras]

Or Plan B - get a company card, put all wholly and exclusively business expenses on there and ignore personal money completely. Result, no P11D at all... Hector won't care since there is no tax involved either way as long as they are genuine expenses.

Why make life complicated?

Wrong.

In fact the HMRC guidance is very clear and says the opposite. Source of payment makes no difference to P11D reporting, and why should it? Without adding that caveat your advice is at best misleading.

That said my experience over c10k P11D returns and a 0% query rate is that HMRC don't worry about reporting of clearly deductible items be they paid on private or business card, with or without dispensation: there's no tax lost so why would they?

Agreed. P11D is a waste of time for genuine business expenses if everyone is honest about what constitutes a genuine business expense! I imagine it could be used to red-flag potential abuse worthy of investigation, but it's a fairly blunt instrument at that.

[malvolio]

Wrong.

In fact the HMRC guidance is very clear and says the opposite. Source of payment makes no difference to P11D reporting, and why should it? Without adding that caveat your advice is at best misleading.




Agreed. P11D is a waste of time for genuine business expenses if everyone is honest about what constitutes a genuine business expense! I imagine it could be used to red-flag potential abuse worthy of investigation, but it's a fairly blunt instrument at that.

OK, so which is right: not reporting expenses you haven't incurred and not been reimbursed for, or not reporting business expenses that are none of your concern? As I said, I know what the rules state and I know what three separate accountants (four if you count Jessica) have said about it.

If you're going to criticise casual advice on a public forum, at least be consistent.

[Contreras]

OK, so which is right: not reporting expenses you haven't incurred and not been reimbursed for, or not reporting business expenses that are none of your concern? As I said, I know what the rules state and I know what three separate accountants (four if you count Jessica) have said about it.

If you're going to criticise casual advice on a public forum, at least be consistent.

I'll say it again. Source of payment makes no difference to P11D reporting.

The HMRC guidance with respect to travel expenses which makes that point clear enough.

For other business expenses, what Jessica said:

HMRC don't worry about reporting of clearly deductible items be they paid on private or business card

Is that consistent enough for you?

[malvolio]

I'll say it again. Source of payment makes no difference to P11D reporting.

The HMRC guidance with respect to travel expenses which makes that point clear enough.

For other business expenses, what Jessica said:

Is that consistent enough for you?

And I'll say it again: as long as you stick to genuine business-only expenses paid exclusively from the company's credit card and with no BIKs arising as a result, nobody actually gives a damn.

[AdamPlanUk]

Ok thanks to everyone for your advice I think I know where I stand now. Will be going down the business debit/credit card route then for all genuine expenses.