'benfits in kind' tax from my company expenses

halo1234

I received a tax bill for a large amount for my company expenses from 08 & 09 & I presume I will be getting one for 2010. I called HMRC & they explained it was due to 'benfits in kind' from my expenses through work. They then confirmed they had received a 336 form for the 2008 period, which resloved that year, but required the same form for 2009 & 2010. These expsnes are work related, required for me to function in my job. We are a pretty small company & I'm not sure what to do next.

Wonder if anyone could advise.

Thanks

jimmo

Never heard of a 336 form but Section 336 ITEPA (Tax law on employments) relates to entertainment expenses.
It this what your problem is about?

halo1234

Thanks Jimmo I also found the info relating to section 336 ITEPA (Tax law on employments). I can't see any info regarding to the procedure on how I confirm to HMRC that these costs relate to business expenses & are not taxable. When I asked the person on the phone they suggested I completed a 336 form & posted it back to them with a copy of my P11D.

jimmo

O.K.
Was a form used to notify of the amount of tax owed, e.g. form P800?
Does the notification give you a time limit to raise an appeal?
If so, make sure you are within time.
There is a general rule that entertainment expenses are not allowable for tax purposes but in employment situations only one person has to take the hit. Normally, in my experience, that is the employer, not the employee.
http://www.hmrc.gov.uk/manuals/eimanual/eim32635.htm
As I said in my previous post, I’ve never heard of a 336 form but if HMRC sorted out 2008 without involving you I can’t understand why they can’t sort out 2009 and 2010 the same way.
I’m afraid this may be a warning that you are going to get the same problem every year from now on.
Try phoning HMRC again and if its an 0845 number, make sure you record the date and time of the phone call so that the recording can be traced if necessary.
If you have a direct line number, which in my days there, were not recorded, make sure you follow up with a letter of confirmation.
Ask whoever you speak to, to send you blank 336 forms for the outstanding years so that you can complete them.
If the forms exist, all well and good, you will have to complete them. If they don’t, ask them what, exactly, they expect from you.

RichCH

So are you saying for the 2008 and 2009 period by filling in a 336 you actually got the claim of underpayment reversed?

I'm in a similar situation, so what I'm going to do is actually write a letter first of all asking for this form but at the same time asking if this is in fact the correct way to go about this. In my case I've been taxed on flights, taxis and hotels that were provided for me by me employers.

John_Pierpoint

If you write it could be Easter before you get a meaningless reply.
I am sad to say.
Best demand to sort it out on the phone and then confirm what you have agreed in a letter.

BoGoF

Demand to sort it out on the phone......why ?

You need to make a S336 claim evey year so write in and make that claim.

RichCH

So best to call my own tax office and see what they say? I've been reading up on this and it says I can fill out a P87 form but this appears to be for expenses that I have paid for myself and have reclaimed, not for things that have been paid for me.

BoGoF

Oh and for all those 'oldies' Section 336 replaces what were Section 198 claims

BoGoF

RichCH wrote: »

So best to call my own tax office and see what they say? I've been reading up on this and it says I can fill out a P87 form but this appears to be for expenses that I have paid for myself and have reclaimed, not for things that have been paid for me.

Write a letter headed Section 336 claim and say that the P11d benefits relates to reimbursed expenses incurred, wholly, exclusively and necessarily in the performance of your duties of employment and list the items and amounts.

As I said this will need to be an annual claim so as soon as you get your P11d at the end of a tax year make the claim.

RichCH

BoGoF wrote: »

Write a letter headed Section 336 claim and say that the P11d benefits relates to reimbursed expenses incurred, wholly, exclusively and necessarily in the performance of your duties of employment and list the items and amounts.

As I said this will need to be an annual claim so as soon as you get your P11d at the end of a tax year make the claim.

Thank you.

So this also counts for expenses where the company paid for things for me? To cut a long story short, my employer has included taxis, flights and hotels paid for by the company but were for my benefit during working, as well as expense claims by myself.