P11d form - is this a legal requirement for a Director of a Ltd Co?

fuddyduddy12

Any wrote: »

Those are both expenses of the company...?! Why would you put them on P11D? Those are expenses of the company, so they will be corporation tax deductable (or not), nothing to do with you as an employee or director?
I am not sure I understand what are you trying to achieve? Do you have any idea what Ltd company means?

So you are going to cover the car, fuel etc all from your own pocket, not through the company?

This is precisely why I was asking this question. Because I have been told by two of the accountants that I spoke to that I would need to put the Professional Liability Insurance down on the P11d (even if it equals "nil" in benefit in kind). Hence why I am confused. It doesn't seem like it is a very clear topic, to accountants or HMRC. I would be initially paying for the Liability Insurance out of my own money (since there would be no money in the company account upon opening it) and the company then would reinburse me. I would have to put that on a P11d according to several accoutants plus the response quoted by Antrobus which says "- things that you (the director) have personally paid for and which the employer (your company) has then reimbursed to you" to which the insurance would apply.

I will be travelling to work on London transport and yes, paying out of my own pocket as I have been told by 2 accountants that I cannot claim this as an expense.

Any

fuddyduddy12 wrote: »

This is precisely why I was asking this question. Because I have been told by two of the accountants that I spoke to that I would need to put the Professional Liability Insurance down on the P11d (even if it equals "nil" in benefit in kind). Hence why I am confused. It doesn't seem like it is a very clear topic, to accountants or HMRC. I would be initially paying for the Liability Insurance out of my own money (since there would be no money in the company account upon opening it) and the company then would reinburse me. I would have to put that on a P11d according to several accoutants plus the response quoted by Antrobus which says "- things that you (the director) have personally paid for and which the employer (your company) has then reimbursed to you" to which the insurance would apply.

I will be travelling to work on London transport and yes, paying out of my own pocket as I have been told by 2 accountants that I cannot claim this as an expense.

Insurance I believe would be companie's expense.
Membership to professional bodies for individuals "should" go on P11D unless you have dispensation notice for it, but in the end you should not be taxed on it (so some don't bother).

The treatment of it is probably why you are getting different answers - if you put it through as reimbursement of expenses then yes, unless you have dispensation it should go again on P11D, you get new tax code and then you send them letter detailing it was 100% for business use and they will change it back again..

But would it not be easier to put the money into the company, as purchase of shares or something (as it would also show you own the capital) and pay it from there? The company should have some capital.. You can invest some money in there, to pay these things and not make it complicated like this.

As for the travel - company can pay anything it wants, but it would then defo be benefit in kind and you would have to pay tax on it and so would the company.
I was asking as many people get lease car through the company so I was checking.. They then pay tax on it and lease cost is corporation tax deductable for the company so it works out.

It seems you haven't got a basic knowledge of Ltd co or what having one means - I am not saying it is illegal, but I think it is essential you have basic knowledge.
I would recommend "for dummies" book, it won't take you long to read and at least you will know what is and isn't beneficial for you and your company. At least you will know what questions to ask.

Any

http://www.amazon.co.uk/Limited-Company-Williams-Chartered-Accountants/dp/1906971544/ref=cm_cr_pr_pb_i#_

this one looks good.

I am supposing that you are a contractor or subcontractor. I am supposing that you are going to pay yourself from your company some wages and some dividends...? Or just wages? I am supposing you are forming a company because that is what was needed to get the contract?

If you know what you are doing, the world of tax and accountant fees can save you lots of money.

jasjhooty

As a Tax Consultant involved in the design of the P11D Software,(P11D Organiser) I will attempt to clarify the requirements for P11D completion.

Firstly P11Ds have to be completed are required for Directors if they are receipt of benefits-in-kind or expenses (including reimbursed ones). Most larger companies can obtain a dispensation from HMRC to not report legitimate business expenses in a P11D form. However HMRC tends to be very suspicious of smaller limited companies and rarely issue dispensations to them.

Therefore in your circumstances any business expenses that your company reimburses to you for or that the company has paid for directly would have to be entered on the P11D. The liability insurance that you have claimed from you own personal money will not have to be entered unless the company reimburses this money to you.

Once all of your expenses have been entered you then have to make a matching expenses claim to those that you feel have been incurred for business purposes. If you do not do this then HMRC will assume that there was no business element and will attempt to tax you on these figures.

Your comments relating to travelling to a place of work require further information before the taxable position can be ascertained. If your business operates from a normal office (could be your home) and you have to travel to a place of work for less than 24 months then the temporary workplace rules may apply and none of the business travel costs will be deemed to be taxable. Please see HMRC's Booklet 490 for more guidance.

I hope I have clarified the confusing position somewhat.