How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask bigduckontax Your Own Question

bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3615
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

Currently completing P11ds and we have Flights and Hotels

Resolved Question:

Currently completing P11ds and we have Flights and Hotels costs accumulated for a Director. I am wondering if am correct in putting these costs in section M of the P11d other items and we pay the Class 1 a on it or does it go under N. General expenses allowance for business travel and the individual is taxed on it ?
Submitted: 11 months ago.
Category: Tax
Expert:  bigduckontax replied 11 months ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

Why are you reporting such payments on a Form P11d at all?. This form is for reporting benefits in kind and if the expenses are wholly and necessarily expended for the company's business then they do not comprise a benefit in kind. Employees are not taxed on such matters, which they would be were they entered on the Form P11d.

You may wish to come back to me on this question.

Customer: replied 11 months ago.

on the other hand if we had paid personal accommodation and flights would this be taxable if the company had paid it or down to the individual to make good the cost

Expert:  bigduckontax replied 11 months ago.

If the individual paid off the expenditure it would not need to be reported. If, on the other hand, it was not immediately reimbursed it would become a loan to a shareholder or a director or both. This can have horrendous tax consequences. Here is a cautionary comment from Whitefield Tax:

' In terms of tax, a special charge exists under s 455 CTA 2010, sometimes known as Advance Corporation Tax. This dictates that if a loan is made to a director / shareholder then a tax payment equal to 32.5% (25% pre 31 March 2016) of the loan value needs to be paid to HMRC if the loan is still outstanding 9 months after the year end – this tax is repaid to the company 9 months after the accounting year in which the loan is repaid.'

Of course using a company to arrange private travel with the individual making good the payment immediately is common and quite proper. This does not involve the P11d procedure as there is no benefit in kind involved.

Customer: replied 11 months ago.

However if their normal place of work is Plymouth and we pay for flights from their home in lets say Scotland to Plymouth each week is that not classed as a benefit in kind ?

Expert:  bigduckontax replied 11 months ago.

It is a general point of taxation principle that conveyance from residence to normal place of work is the financial responsibility of the individual. Thus for these weekly journeys such payments would constitute a benefit in kind and entered at N on that form.

bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3615
Experience: FCCA FCMA CGMA ACIS
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 11 months ago.

Thank you for your support.

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Previous | Next >
  • http://ww2.justanswer.co.uk/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.co.uk/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    2333
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.co.uk/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    524
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2845
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.co.uk/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    270
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.co.uk/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.
 
 
 

Related Tax Questions