If you would like to cut down on your paperwork in filling out P11D and P9D forms in 2014 you can apply to HMRC for a P11D dispensation.
This will make reimbursing expenses from your company to your employees or to yourself as a Company Director much easier.
“A dispensation is a notice from HM Revenue & Customs (HMRC) that removes the requirement for the employer to report certain expenses and benefits at the end of the tax year on forms P11D or P9D. There is also no need to pay any tax or National Insurance contributions on items covered by a dispensation.
It also removes the requirement for employees to submit claims for deductions against expenses previously reported on forms P11D or P9D.” (HMRC Website)
The common expenses that HMRC list as covered by dispensation are:
- travel, including subsistence costs associated with business travel
- fuel for company cars
- hire car costs
- business entertainment expenses
- credit cards used for business
- fees and subscriptions
Please do visit HMRC’s website for a full A-Z listing of all expenses that can be claimed under dispensation.
As an employer you must have an independent system in place for monitoring and checking all employee authorised expenses to ensure the amount you claim is not exceeded and also does not include disallowable expenses.
If you do manage your own business, it is best practice to include some supporting evidence of your completed expense forms and receipts of your reimbursed expenses.
To find out more about this dispensation get in touch.