OXFORD BRANCH P11D UPDATE

1
OXFORD BRANCH P11D UPDATE

• MIKE EVANS
• MY CONSULTANCY
• 14TH March 2012

2
INTRODUCTION

• Reporting requirements
• Preparing for P11D Filing
• Exemptions and exclusions
• 2011/12 P11D Changes
• Calculating the cash equivalent
• Future changes for company cars

3
REPORTING REQUIREMENTS

• Income tax charged on emoluments of an office or
  employment
• Income includes salaries, fees, wages taxed
  through PAYE and
• Perquisites and profits whatsoever, where P11Ds
  are needed
• Profit may arise from payment of non-business
  expenses or if employees are paid more than the
  business cost incurred
• Expenses are part of an employees employment
  income
• Expenses and benefits have to be reported on form
  P11D
• Unless covered by a P11D dispensation

4
REPORTING REQUIREMENTS

• Form P9D (Rarely used)
• No need to report expenses incurred solely and
  necessarily in the performance of the duties and
  business travelling expenses
• Report other expense payments in excess of 25,
  including
• Round sum allowances e.g. mobile phone top ups
• Relocation expenses and benefits
• Any other payments or benefits
• Vouchers and credit cards
• Accommodation benefit

5
REPORTING REQUIREMENTS

• Form P11D
• Report ALL expenses and benefits provided to
  employees and directors (or to members of their
  family or households)
• If provided by virtue of their employment
• Include costs met directly by the employer
• Reporting not restricted to amounts reimbursed
• Unlike form P9D we cannot exclude expenses solely
  and necessarily in the performance of the duties
• Report everything not specifically excluded or
  covered by a P11D Dispensation

6
REPORTING REQUIREMENTS

• P11Ds are required for ALL directors
• Except full time working directors with no
  material interest (5 ordinary share capital) and
  directors of a Charity or other non-profit making
  organisation
• P11Ds required for any employee or director
  earning at a rate of 8,500 p.a.
• Director includes any person in accordance with
  whose instructions the directors are accustomed
  to act

7
REPORTING REQUIREMENTS

• P11D OR P9D?
• At a rate of 8,500 per annum?
• Emoluments include
• Salaries, fees, wages, bonuses, commissions and
  other cash pay, plus
• Expenses, before any deductions and
• Benefits in kind
• Emoluments exclude approved pension payments and
  GAYE contributions
• Part-time employee earning less than 8,500 per
  annum will be P9D

8
REPORTING REQUIREMENTS

• EXAMPLE - New employee started on 3rd January
  2012
• Earnings to 5th April 2012 7,500
• Expenses 164
• Medical benefit 240
• Total 7,904
• Actual earnings less than 8,500, but
• Annual Rate (12/3 x 7,904) is 31,616
• i.e. over 8,500 per annum
• P11D needed to report the medical benefit and the
  expenses
• If not covered by a dispensation

9
REPORTING REQUIREMENTS

• 19 (20) April 2012 Payment of PAYE/NICs on
  expenses
• 19 May 2012 Submission of EOY PAYE returns
• 6 July 2012 submission of
• P11Ds, P9Ds and P11D (b)
• 19 (20) July 2012 for payment of
• Class 1A NICs on taxable benefits in kind
• 19 (22) October 2012 for payment of
• Income tax and Class 1B NICs on 2011/12 PAYE
  Settlement Agreement (PSA)
• Cheques to reach HMRC by 19th and
• Cleared payments to reach HMRCs bank account by
  22 July or October

10
(No Transcript)
11
PREPARING FOR P11D FILING

• How are the P11D returns to be submitted
• Paper forms or electronic submission?
• HMRCs Basic PAYE Tools (Print and file, not
  online)
• HMRC 'Online Return and Forms - PAYE' service ?
• P11D Software?
• Online P11D filing is optional, not statutory
• P11D software saves time and reduces errors
• Paper returns for back up, last minute filing or
  amendments

12
PREPARING FOR P11D FILING

• Who is taking responsibility for the task?
• Preparing/completing the returns?
• Technical check/proof reading?
• Submitting the returns to HMRC?
• Make that decision and agree a timetable
• To provide the information if outsourcing
• To submit the returns to HMRC
• To meet the statutory deadlines

13
PREPARING FOR P11D FILING

• What information do we need to complete the P11D
  returns?
• What expenses and/or benefits were reported last
  year?
• Review the P11D and/or Tax file
• Set up a permanent file if necessary
• Is there a registered PAYE Settlement Agreement?
• Note items to be excluded from P11D reporting
• Check the terms of any P11D dispensation
• Note which items HMRC has agreed can be excluded
  from P11D reporting and that any conditions have
  been satisfied
• Is the P11D Dispensation still valid?

14
PREPARING FOR P11D FILING

• Contact anyone you need information from
• Payroll Department or Bureau for deductions from
  salary
• Loan repayments, medical insurance contributions
  etc.
• List of employees earning at a rate of 8,500
• Human Resources
• Details of new benefits Relocations
• Finance Department
• Cost details of expenses and benefits
• Fleet manager or Leasing Company
• Company car/fuel details
• Anyone else?
• Relocation company or Medical Insurance provider?

15
EXEMPTIONS AND EXCLUSIONS

• Expenses covered by a P11D dispensation
• Business travel and subsistence,
• Business entertaining
• Professional subscriptions
• Other items specific to the employment
• Taxable expense payments or benefits included in
  a PSA
• Staff entertaining
• Taxable travel
• Included in a Taxed Award Scheme
• Normally third party incentives/awards

16
EXEMPTIONS AND EXCLUSIONS

• Exempt expenses and benefits
• Car, motor cycle, bicycle parking at or near the
  place of work
• Modest private use of heavy goods vehicles
• Incidental overnight expenses
• Works transport Services
• Support for public bus services
• Travelling and subsistence during public
  transport strikes
• Transport between work and home for disabled
  employees
• Late night taxis from work to home

17
LATE NIGHT TAXIS

• Limited exemption for transport from work to home
• Employees required to work later than usual (at
  least until 9.00 pm)
• Late working must be irregular (not infrequent)
• Public transport ceased or unreasonable to use it
• Limit of 60 journeys per annum (excess taxable)
• Expected abolition of exemption will not proceed!
• Abolition would impact on vulnerable groups
• Abolition would increase administration
• Going against the aim of tax simplification
• Remember! HMRC requires detailed records to be
  kept to justify any claims for deduction or
  exemption

Tim Buss and Mike Evans for Quorum Training
18
LUNCHEON VOUCHERS TAX RELIEF

• Tax and NICs exemption on 15p per working day!
• Meal voucher provided by employer to an employee
• Excess above 15 p liable to tax and NICs
• Relief introduced in 1946 when food rationing was
  in place to help individuals afford healthy
  meals!
• Benefit of the relief almost entirely eroded by
  inflation
• Low in value and no longer achieves a clear
  objective
• Relief will cease to be available for luncheon
  vouchers provided on or after 6 April 2013
• NICs exemption repealed from the same date
• Cycle to work meals exemption also scrapped

19
EXEMPTIONS AND EXCLUSIONS

• Small gifts such as flowers for births, marriage
• But not if a thank you or a reward
• Seasonal gifts such as a turkey, box of
  chocolates or ordinary bottle or two of wine
• Not an expensive hamper or case of wine
• If not trivial in amount!
• Free coffee/tea/water available to all
• Tax free if not available to all on minor
  trivial grounds

20
(No Transcript)
21
2011/12 P11D CHANGES

• Only the tax year has changed, to 2011/12
• Still an A to N, Assets transferred to Section N,
  Expenses
• HMRC expected to take a tougher line on the P11D
  Quality Standard warning letters issued last
  year
• Section D, Living accommodation, official rate of
  interest remained at 4 and note for Section H,
  beneficial loans
• Section E, Authorised Mileage rate increased to
  45p for first 10,000 business miles from 6 April
  2011
• Section F changes to the car benefit rules next
  slide
• Section M, Changes on childcare exemption

22
CALCULATING THE CASH EQUIVALENT
Cash Equivalent?
23
HMRC GUIDANCE

• CWG5 (Class 1A NICs)
• Appendix 1, Common Benefits
• 480 Expenses and Benefits
• 27 Chapters and 11 Appendices of advice
• Chapter 5 for non-taxable payments and benefits
• P11D Guide
• 490 Employee travel
• CWG2 Employer further guide to PAYE and NICs
• Chapter 5 guidance on when PAYE/NICs due

24
(No Transcript)
25
HMRC GUIDANCE

• P11D working sheets to help calculate the cash
  equivalent of the following benefits in kind
• Living accommodation
• Car and fuel benefits
• Company vans
• Interest free loans
• Relocation expenses and benefits
• Mileage allowance and passenger payments

26
EXPENSES AND BENEFITS A to Z

• http//www.hmrc.gov.uk/paye/exb/
• Expenses and benefits W
• Workplace nursery
• Water rates or charges for living accommodation
• Welfare counselling
• Working from home - office equipment and supplies
• Works bus services
• Workshop equipment and supplies

27
CALCULATING THE CASH EQUIVALENT

• Amount paid by employer (or third party) on
  employees behalf
• Matches entry on tax returns

15
1A
15
28
CALCULATING THE CASH EQUIVALENT

• P11D employee or director
• Cost to employer
• Or any third party provider!
• P9D employee
• Second hand value
• N.B. There are some exceptions
• Company car and fuel benefits
• Company van benefits
• Living accommodation
• Vouchers

29
VAT

• ALL EXPENSE PAYMENTS AND BENEFITS IN KIND MUST
  BE REPORTED ON THE P9D OR P11D ON A VAT INCLUSIVE
  BASIS

30
MAKING GOOD

• Section 203(2) ITEPA 2003
• The legislation does not set a time limit on the
  "making good". This will usually happen shortly
  after the expense is incurred by the person
  providing the benefit. But you need not object to
  a belated "making good" if it is done within a
  reasonable time of the employee becoming aware
  that the chargeable benefit can be reduced, in
  whole or in part, by reimbursing the expense
  incurred by the provider. What constitutes a
  "reasonable time" will depend on the facts of the
  case. Do not allow a deduction for "making good"
  which takes place after a charge to tax on the
  benefit concerned has become final and conclusive.

31
A. ASSETS TRANSFERRED
1A

• Have any company owned cars been sold or given to
  a director or employee?
• Was the price paid the market value and can you
  prove that?
• Any other assets sold or given to a director or
  employee?
• Painting
• Clothes
• Office equipment
• Bicycles?

32
C. VOUCHERS AND CREDIT CARDS

• Report value of vouchers and credit card payments
• Report expenses etc. using credit cards or
  tokens, but
• ONLY amounts not reported elsewhere
• Section M or N?
• Taxable Childcare vouchers reported here
• Taxable Childcare (Employer Contracted) Section M

33
E. MILEAGE ALLOWANCE AND PASSENGER PAYMENTS
VEHICLE FIRST 10,000 BUSINESS MILES EXCESS OVER 10,000 BUSINESS MILES
CARS 45p 25p
MOTOR CYCLES 24p 24p
CYCLES 20p 20p
34
APPROVED MILEAGE PAYMENTSEMPLOYEE CARS

• Have employees kept cumulative business mileage
  claims and was the 45p rate reduced to 25p after
  10,000 miles?
• Example
• Christine was reimbursed 45p for all business
  mileage
• Christine claimed 14,808 business miles
• Reportable excess is 4,808 x 25p 1,202
• 1,202 excess to be reported at P11D Section E

35
APPROVED MILEAGE PAYMENTSEMPLOYEE CARS

• If an employer reimburses less than the AMAP rate
• Employees can claim additional tax relief
• Employees can claim the difference between the
  amount reimbursed and the authorised amount
• Example Employer reimburses 25p per mile
• Employee can claim the additional tax relief due
  at 20p per mile up to the 10,000 business miles
  limit
• Claim 8,285 miles _at_ 20p (45p - 25p) 1,657.00
• Tax claim _at_ 20 331.40
• Tax claim _at_ 40 662.80
• Tax claim _at_ 50 828.50

36
F. CARS (9) AND CAR FUEL (10)
1A

• The information to be reported is
• Make and model of the company car
• Date the car was first registered
• Approved CO2 emissions figures g/km
• www.vca.gov.uk
• www.smmt.co.uk
• Engine size cc
• Type of fuel/power used ?
• Dates car was available

37
SECTION F CAR BENEFIT CHANGES

• There will only be three letters to describe cars
• E for electric only cars (as before)
• D for all diesels (previously types D and L), and
  
• A for all other types (previously types H, B, C,
  G P)
• There will no longer be any reductions for
  alternative fuels
• The diesel surcharge will apply to all diesels,
  whenever registered

38
FUEL POWER KEY
Type of fuel P11D Code Adjustment
Zero emission cars (including electric cars) E None
Diesel cars (all Euro standards) D 3 supplement, subject to 35 maximum
All others, including Hybrid diesels A None
39
SECTION F CAR BENEFIT CHANGES

• The 80,000 limit for the price of a car for car
  benefit purposes no longer applies (from 2011/12)
• Expensive cars will now be taxed at their full
  List Price
• Example
• 2010/11 List Price 120,000, assume 35 CO2
• Car benefit price capped at, 80,000 x 35
  28,000 benefit
• 2011/12 List Price 120,000, assume 35 CO2
• Car benefit on List Price of 120,000 x 35
  42,000 benefit
• Exclusion of certain security related costs!

40
SECTION F COMPANY CAR BENEFIT CHANGES

• Lower CO2 threshold (15 rate) reduced from
• 130g/km to 125g/km
• Lowest appropriate percentage is 0 per cent
• Applies to cars with CO2 emissions of zero
• Cars with CO2 emissions of less than 75g/km have
  an appropriate percentage of 5 per cent
• Cars with CO2 emissions of 76g/km to 120g/km have
  an appropriate percentage of 10 per cent
• Thereafter the rate is 15 per cent increasing by
  1 per cent for every 5 g/km to the current
  maximum of 35 per cent
• Emissions of 225g/km and above

41
1A
F. CARS (9) AND CAR FUEL (10)

• Only use boxes when cars first provided or cease
  to be provided, or
• Where there is a change of car in the tax year
• Car unavailable before it is first provided
• Car unavailable after it is withdrawn
• Car treated as unavailable if the car is
  unavailable for periods of 30 consecutive days or
  more
• Car not treated as unavailable if employee is
• banned from driving, or
• out of the country on business or holiday, or
• unable to drive the car for another reason e.g.
  illness

42
11 06 11
06 04 11
10 06 11
05 04 12
43
1A
F. CARS (9) AND CAR FUEL (10)

• The list price is the inclusive price published
  by the manufacturer, importer or distributor if
  sold singly in a retail sale in the open market
  in the UK on the day before the date of the cars
  first registration
• List price includes
• VAT, car tax, customs or excise duties and
  delivery charges
• List price excludes
• New car registration fee (admin charge)

44
1A
F. CARS (9) AND CAR FUEL (10)

• List price of each company car
• Including standard accessories, plus
• List price of all non-standard accessories
• Ignore later provided accessories if cost below
  100 e.g. mud flaps
• List price probably not the price paid for the
  car
• Ignore discounts and second hand price
• Use manual price for automatic car provided to a
  disabled employee
• Booklet 480, paragraph 12.7

45
1A
1,450
600

• Capital contributions reduce the list price of
  the car for employee making the contribution
• Up to a maximum of 5,000
• Might be paid for accessories e.g. tow bar
• Not transferable to different employee
• Private use contributions reduce the company car
  benefit on a 1 for 1 basis
• There must be a requirement to make payments as a
  condition of the car being available for private
  use, and
• Payments must be specifically for that private
  use
• Payments for supplies or services e.g. petrol or
  insurance
• Do not qualify as private use contributions

46
F. CAR FUEL SCALE CHARGE (10)
1A

• A car fuel benefit charge will apply if any fuel
  is provided for a company car, Unless
• The employee is required to and does make good
  the full cost of any private fuel, or
• Fuel is only made available for business mileage
  and that can be proven!
• Employees can make good the cost of ALL private
  fuel by payment or reinstatement, but
• Employers may have to prove to HMRC that
  procedures have been in place to ensure that no
  free fuel has been provided

47
SECTION F COMPANY CAR FUEL BENEFIT CHANGES

• The company car fuel benefit multiplier has
  increased from 18,000 to 18,800
• The maximum car fuel benefit has increased from
• 18,000 x 35 6,300, to
• 18,800 x 35 6,580
• Further increases likely
• Even more important to check value of free
  fuel, and
• Avoid accidental fuel scale charges

48
HMRC TARGETS

• Employment Status and Casual Labour
• Fuel scale charges
• Home to work travel
• Long service/retirement awards
• Salary Sacrifice Schemes
• Share Schemes
• Staff entertaining
• Termination Payments

49
FUEL SCALE CHARGES

• Company Car Fuel Scale Charges
• An HMRC spokesman commented Employers should
  have appropriate systems in place to verify that
  any business mileage claims made by their
  employees can be paid free of tax. Should such
  claims turn out to be false, both the employer
  and employee may be liable to action taken by
  HMRC.
• Recent research revealed that 72 per cent of
  respondents suspect that their drivers
  overestimate mileage claims on a regular basis.
  This is coupled with the revelation that only 50
  per cent of firms routinely double check the
  accuracy of claims. More than one in 10 believe
  that the practice of inflating mileage is routine

50
FUEL SCALE CHARGES

• Company Car Fuel Scale Charges
• Avoiding a fuel scale charge means not providing
  free fuel
• Intentionally or unintentionally!
• Business mileage recording is the first point to
  address
• If the employer ensures that proper mileage
  records are maintained and checks them?
• Next we must ensure that the correct amount of
  fuel is provided
• Using HMRCs Advisory Fuel Rates is the safe
  bet!

51
ADVISORY FUEL RATESCompany Cars

• HMRC Guidance on fuel rates for company car
  drivers
• Not relevant to Vans or employee own cars
• AFRs can either be used for
• Reimbursing employee business mileage, or
• Recovering employee private fuel costs
• AFRs based on average fuel costs and only
  advisory rates
• Employers may have to justify the use of
  different rates
• Higher reimbursement or lower recovery
• Have these rates been used in 2011/12 to avoid
  any liability?

52
ADVISORY FUEL RATES March 2012 - Dec - Sept
June - March 2011
Engine Size Petrol 135.2p - 128.9p Diesel 143.2p - 134p LPG 74.1p - 76.5p
1,400 cc or less 1,600 cc or less for diesel cars 15p 15p 15p 15p 14p 2p 13p 12p 12p 12p 13p 0p 10p 10p 11p 11p 10p 1p
1,401 - 2,000 cc 1,601 - 2,000 cc for diesel cars 18p 18p 18p 18p 16p 2p 15p 15p 15p 15p 13p 2p 12p 12p 12p 13p 12p 1p
Over 2,000 cc 26p 26p 26p 26p 23p 3p 19p 18p 18p 18p 16p 3p 18p 18p 18p 18p 17p 1p
53
ADVISORY FUEL RATES

• Employers should check that the amount recovered
  from their employees was sufficient to cover the
  full cost of any and all private fuel in their
  company cars
• If the answer is no, or if there is any doubt?
• There may be a liability to PAYE NIC, but only
  on the excess rate for genuine business mileage,
  But
• There may be a P11D car fuel scale charge to
  report on the private fuel for non-business
  mileage
• Employers need to monitor the AFR changes, but
  first
• Employers should insist on accurate mileage
  records

54
NIC MILEAGE RATES
NIC - rates per business mile NIC - rates per business mile
Type of Vehicle Every business mile
CARS and VANS 45p
MOTOR CYCLES 24p
BICYCLES 20p
55
NIC MILEAGE RATES

• Example
• John claims 12,250 bus miles _at_ 45p 5,512.50
• Authorised amount 10,000 miles _at_ 45p
  4,500.00
• Balance 2,250 miles _at_ 25P 562.50
  5,062.50
• Excess to report Section E form P11D
  450.00
• The NICs QA is 45p for every mile, therefore No
  NICs due

56
G. VANS (9)
1A

• Report total cash equivalent of all vans made
  available
• Van means
• A vehicle of a construction primarily suited for
  the conveyance of goods or burden of any
  description (this does not include people)
• with a design weight not exceeding 3,500
  kilograms
• Double cab pick ups are a potential problem?
• Classification as car or van dependent on VAT
  treatment
• Payload 1 tonne (1,000 kg) or more accepted as
  van - double cab pick ups only
• Two door vehicles of this type normally accepted
  as van
• Some vans may be adapted and become cars

57
G. VANS (9)
1A

• The charge will be Nil if both the following
  requirements are satisfied throughout the year
  (or part of the year on when the van is available
  to the employee)
• Must only be available for business travel and
  commuting and must not be used for any other
  private purpose except to an insignificant extent
• Must be available mainly for use for the
  employees business travel
• If both the above requirements are not met the
  company van benefit charge for 2011/12 is 3,000

58
G. VANS (9)
1A

• MEANING OF INSIGNIFICANT?
• No definition so we must use its ordinary meaning
• Too small or unimportant to be worth
  consideration
• Private use considered insignificant if it is
• insignificant in quantity in the tax year (few
  days at most)
• insignificant in quality (week private use not
  insignificant)
• intermittent and irregular
• the exception in the pattern of use of that van
  by that employee (or their family or household)
  in that tax year
• Examples of insignificant private use of a van
• takes an old mattress/rubbish to the tip once or
  twice a year
• regularly makes slight detour to stop at
  newsagent on the way to work
• calls at the dentist on his way home

59
COMPANY VAN FUEL CHARGE (10)
1A

• The Van fuel charge will not apply if fuel is
  made available only for business travel
• Is there evidence to confirm this?
• The Van fuel charge will not apply if the
  employee makes good the full cost of any and all
  fuel provided for private use
• The Van fuel charge will not apply if the
  provision of the company van is not taxed as a
  benefit in kind

60
POOL CARS (9) VANS (910)
1A

• Car/Van only qualifies as a pool car if all the
  following conditions are satisfied (Chapter 15,
  480)
• Available to and actually used by more than one
  employee
• Made available by reason of their employment
• Not ordinarily used by one of them to the
  exclusion of the others
• Any private use is merely incidental to the
  business use, and
• It is not normally kept overnight on or near the
  residence of any of the employees unless on
  premises occupied by the provider of the car
• Is there a log and control of the use of pool
  vehicles?

61
I. PRIVATE MEDICAL INSURANCE (11)
1A

• Report the cost of all medical and dental
  expenses or insurance premiums where the
  liability is the employers
• Report at Section B if costs or premiums incurred
  by employee
• Has employer paid the excess for claims made by
  employees?
• No liability or reporting for
• Costs related to overseas duties
• Costs related to work related injuries or
  diseases
• Periodic medical screening or health checks
• Eye tests and glasses required for work use by
  computer and VDU screen users

62
J. QUALIFYING RELOCATION (11) EXPENSES PAYMENTS
AND BENEFITS
1A
WS5

• Report only the excess over 8,000 of all
  qualifying expense payments, benefits and
  provided accommodation
• Qualifying expense payments and benefits are
  those that are exempt e.g. Costs of selling,
  purchase and removal
• Costs to be paid by the relevant day
• 12 months after the end of the year of assessment
  in which the employee relocated
• Relocated May 2011, time limit 5 April 2013
• Tax relief limit of only 8,000
• Per relocation, not per annum
• What costs were incurred in the previous tax year?

63
M. OTHER ITEMS
1A?

• Dual choice section for any other benefits in
  kind
• HMRCs P11D guide tells us to enter the following
  items in the brown box
• Subscriptions, educational assistance,
  non-qualifying relocation benefits and expenses
  payments, incidental overnight expenses and other
  benefits where the contract is between the
  employer and the supplier
• Other items to report here include car/van fuel
  for private cars/vans, car parking, Christmas
  boxes, clothing, staff entertaining/social
  functions, holidays, meals, non exempt training
  costs

64
CHILDCARE CHANGES FROM 6 APRIL 2011

• Tax relief restricted to basic rate for new
  members
• Joining the scheme after 5 April 2011
• Full tax relief for members of the scheme as at 5
  April 2011
• Basic rate (20), Higher Rate (40) or Additional
  Rate (50)
• Higher rate new scheme members get relief on 28
• Report excess, say 52 weeks _at_ 27 1,404
• Additional rate new scheme members get relief on
  22
• Report excess, say 52 weeks _at_ 33 1,716
• Amounts are reported here when the Employer
  contracts with the provider of the childcare
• Childcare vouchers reported at Section M, Blue

65
M. OTHER ITEMS

• HMRCs P11D guide tells us to in enter the blue
  box
• Employer provided childcare, if not exempt and
• income tax paid to the Accounts Office in the
  year that the company failed to deduct the tax
  from the directors remuneration.
• Loans written off, personal mobile phone costs,
  non-exempt training costs
• Report non-qualifying relocation expense payments
  or benefits that were exempt but exceeded the
  exempt limit
• Report clothing (not uniform) provided for
  employees use
• Report incidental overnight expenses over 5 (UK)
  10 (OUK)

66
N. EXPENSES PAYMENTS

• Do not report expenses included in a dispensation
• Do not report amounts in C, vouchers and credit
  cards
• Otherwise report here
• Travel and subsistence
• Entertainment
• General expenses allowance
• Payments for use of home telephone
• Non-qualifying relocation expenses
• Other expenses

67
N. EXPENSES PAYMENTS

• Report all business entertaining costs here
• If carrying on a trade, profession or vocation,
  tick the box if any of the expenses have or will
  be disallowed
• Put a X in the box if no disallowance

68
N. EXPENSES PAYMENTS
6,829
6,829
15,682
15,682
629
629
69
POTENTIAL P11D FAILURES

• Failure to report any or all expenses or benefits
• Pool cars and vans that are taxable
• Long service awards (not exempt) and other awards
  or incentives
• Failure to include VAT/full cost of taxable
  expenses or benefits
• Company car list prices/CO2 emission figures
  wrong
• Assets sold below market value and not reported
• Home to work reimbursement (P11D or PAYE/NIC?)
• Taxable staff entertaining, meals, functions etc.

70
P11D DISPENSATIONS

• P11D Dispensations reduce end of year reporting
• Excludes reporting on form P11D, P9D and tax
  returns
• Expense payments and some benefits in kind e.g.
• Qualifying travel and subsistence expenses
• Business Entertaining expenses
• Subscriptions to professional bodies
• Apply in writing (P11DX) or online
• Still time to apply for 2011/12

71
(No Transcript)
72
DISPENSATIONS BY POST

• Download form P11DX from HMRCs website, or
• Your Employer CD-ROM???
• Send to
• Employer Support Team
• HMRC, Bowback House
• 299 Silbury Boulevard
• Witan Gate West
• Milton Keynes
• Bucks
• MK9 1NG

73
SECTION F COMPANY CAR BENEFIT CHANGES

• Changes from 2012-13
• Special rules for QUALECs (qualifying low
  emissions cars) with CO2 emissions not exceeding
  exactly 120g/km to be abolished
• Lower CO2 threshold to be reduced from 125g/km
  to 120g/km
• Lowest appropriate percentages are still 0 and
  5 but 10 will only apply to cars up to an
  emission level of 99g/km
• From 100g/km the rate is11 per cent and rises
  by 1 for every 5g/km to the current maximum of
  35 (emissions of 220g/km)

74
SECTION F COMPANY CAR BENEFIT CHANGES

• Changes from 2013-14
• Lower threshold will be reduced from 120g/km to
  115g/km
• Lowest appropriate percentages still 0 and 5
• 10 will apply to cars with CO2 emissions of
  76g/km to 94g/km
• Appropriate percentage will increase by 1 for
  all vehicles with CO2 emissions between 95g/km
  and 215g/km (maximum 35)
• Changes from 2015-16
• Appropriate percentage for zero emission cars
  reverts to 9 unless this figure is changed in
  any future announcement
• Special rules for cars with CO2 emissions not
  exceeding exactly 75g/km will be abolished

75
WITHDRAWAL OF P11D (b) LATE FILING CONCESSION

• HMRC has announced that it will withdraw the
  concession whereby it does not issue penalties
  for late filing of P11D (b) returns provided they
  are received by 19 July following the end of the
  tax year
• HMRC will withdraw this concession from
• 31 March 2013
• P11D (b) returns filed after that date must be
  submitted by the 6 July statutory deadline
• This change does not affect 2011/12 P11D (b)
  returns

76
OXFORD BRANCH P11D UPDATE

• MIKE EVANS
• MY CONSULTANCY
• 14TH March 2012