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TonyTax
TonyTax, Tax Consultant
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Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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We paid our employee's private car fuel bills on a company

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Hi We paid our employee's private car fuel bills on a company credit card. We raised in error a P11D benefit in Section F for this, as it used to be a company car, but no longer is.
Need to advise error to HMRC and re-submit P11D but not sure which section this goes in. Section B, N or M all sound possible. Can you help?
Submitted: 11 months ago.
Category: Tax
Expert:  TonyTax replied 11 months ago.

Hi.

Section E is usually used for child care vouchers or luncheon vouchers.

If you reimbursed your employee directly in cash or through the payroll for his private fuel, that would be subject to employee Class1 NIC through the next payroll. If he had the use of a company credit card, then Class 1A NIC is due on the private fuel costs which should be shown in Section M, box 151A of the P11D. See Section 11 and Appendix 1 of CWG5 here.

I hope this helps but let me know if you have any further questions.

Customer: replied 11 months ago.
Box M says 'Cost to you'. Will this include the VAT element on the petrol purchases? Does the 'Amount made good then represent what the company has paid on the credit card on the employee's behalf ie the same amount? Or because the company can reclaim the VAT is the amount made good reduced to exclude the VAT? Thanks
Expert:  TonyTax replied 11 months ago.

The benefit to the employee is the VAT inclusive figure so that is what goes in the first box. The "Amount made good" box is what the employee pays back to the employer, if anything, to reduce the taxable benefit.

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