P11D query

[Pistom]

I wonder if anyone can give a definitive answer on this and/or point me to an HMRC reference which tells me what our accountants should be doing.

Should employees who are just receiving reimbursable expenses i.e. mileage allowance for personal car use when on business travel, accommodation and subsistence backed up with receipts, reimbursement for office supplies etc have to have a P11D?

Our accountants say no as none of those are taxable benefits but my business partner reckons that they should have a "nil return" as they're being paid expenses and HMRC will want to know that. The accountants say that a nil return is only required if HMRC request one.

Who is right? These employees have never had a P11D or nil return in 3 years and it has never been queried by HMRC.

[Taita]

I've never had one for non-car or non-healthcare type stuff.

eg not expenses.

[2 GKC]

HMRC site says only for those in receipt of taxable benefits

[Doofus]

A P11d is not used for the reimbursement of out of pocket expenses, only for taxable benefits.

[Pistom]

Thanks so much - really appreciate the responses. Does anyone have a link on HMRC where it refers to this. I'm struggling to find the detail.

[Countdown]

Pistom said:

I wonder if anyone can give a definitive answer on this and/or point me to an HMRC reference which tells me what our accountants should be doing.

Should employees who are just receiving reimbursable expenses i.e. mileage allowance for personal car use when on business travel, accommodation and subsistence backed up with receipts, reimbursement for office supplies etc have to have a P11D?

Our accountants say no as none of those are taxable benefits but my business partner reckons that they should have a "nil return" as they're being paid expenses and HMRC will want to know that. The accountants say that a nil return is only required if HMRC request one.

Who is right? These employees have never had a P11D or nil return in 3 years and it has never been queried by HMRC.

Your accountant is right.

we have about 650 staff who all get expenses of some kind. None of them get a P11d. Any payments that aren't expenses get processed via payroll (so taxed at source) which again means no P11d required.

[Countdown]

Pistom said:

Thanks so much - really appreciate the responses. Does anyone have a link on HMRC where it refers to this. I'm struggling to find the detail.

https://www.gov.uk/employer-reporting-expenses-benefits/reporting-and-paying#:~:text=You%20must%20submit%20a%20separate,(a%20P11D(b)).

Link said:

You must submit a separate report (a P11D) to HMRC for each employee you’ve provided with taxable expenses or benefits that were not payrolled.

Reimbursements of expenditure incurred wholly and necessarily because of work are not taxable.

[Pistom]

Countdown said:

Pistom said:

Thanks so much - really appreciate the responses. Does anyone have a link on HMRC where it refers to this. I'm struggling to find the detail.

https://www.gov.uk/employer-reporting-expenses-benefits/reporting-and-paying#:~:text=You%20must%20submit%20a%20separate,(a%20P11D(b)).

Link said:

You must submit a separate report (a P11D) to HMRC for each employee you’ve provided with taxable expenses or benefits that were not payrolled.

Reimbursements of expenditure incurred wholly and necessarily because of work are not taxable.

Thank you. I read that yesterday but my brain didn't register it - really appreciate the trouble you and everyone else has taken to respond. I'll sleep more soundly now.