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P11D return of benefits and expenses

Comment 2nd July 2010

The P11D return of benefits and expenses needs to be filed by all employers every year by 6 July following the end of the tax year.  The return is required to disclose taxable benefits so that the correct tax can be collected (fair enough) but also any expenses payments to directors / employees, even if it is simply the reimbursement of costs wholly for business.  A "dispensation" can be applied for to limit the reporting requirement of expenses, but is rather bureaucratic and is difficult to use when there is only one director.

My idea is to remove the requirement to report reimbursement of business expenses to directors / employees where they are clearly for business.

Why does this matter?

The reporting of expenses on the P11D benefits nobody.  Employers waste time (or pay their accountants) to colate this information.  HM Revenue & Customs waste money in employing people to input this information, which frequently results in incorrect PAYE coding notices being sent out as HM Revenue & Customs assume the expenses are taxable.  More time and money is then spent by employers and their employees sorting out these incorrect PAYE coding notices.

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