Is a director self employed despite no salary?

chrismac1

Strictly it needs a P11d unless you have an approved dispensation. But in my view you'd be nuts to apply for a PAYE reference in order to file a P11d:

1. No tax is going to be due here. So whilst you might be fined for non-compliance, this is a remote prospect and I'd be 95% confident of getting it wiped on appeal or at Tribunal.

2. You are then into Real Time payroll submissions each month, which includes a requirement to file a zero return. £100 fine for each late submission.

3. As per the previous note in this thread, HMRC staff love asking stupid questions about P11ds. In the same way, 50% of my P11d dispensations get approved each year even though exactly the same boxes are ticked on every application for every client, as they all follow exactly the same process. the reasons for the rejections vary randomly, sometimes the same officer accepts one application but declines another submitted the following week with EXACTLY the same boxes ticked!

Why anyone wants to volunteer for all this hassle is beyond me. My P11d dispensation applications are pure CYA by the way, so over the years I now have over 90% coverage on my client base. But for the other 10%, as above I am not filing P11ds and just ignoring the refusal and applying again next year.

So again, this year I have had 8 clients accepted on the P11d dispensations who were declined last year. EXACTLY the same boxes on the applications were ticked in both years, you can't make this stuff up!

Pennywise

chrismac1 wrote: »

So again, this year I have had 8 clients accepted on the P11d dispensations who were declined last year. EXACTLY the same boxes on the applications were ticked in both years, you can't make this stuff up!

Yup, exactly the same with my clients. Considering the taxpayers charter said all taxpayers should be treated equally, the lack of consistency is shocking. For the ones we get refused, we just apply again a few months later, and keep doing it until we get an acceptance. What a crazy system, and the sooner it's all scrapped, the better. But like you, we don't do P11ds even without a dispensation for expenses reimbursements where there's no tax nor NIC. Complete waste of time for all concerned.