P11D

Is it a requirement to submit a P11D when ONLY business expenditure has been reimbursed to the employee? These are items that the employee has bought on behalf of the company and been reimbursed the exact amount on production of the receipt. There are no other expenses or benefits which need to be reported. I have read all of the HMRC guidance that I can find and also searched online but all I seem to be able to find is references to other scenarios for P11D.

If you are paying genuine business only expenses back to the employee to the actual value then there is no need for a P11D, e.g. employee pays for a hotel room £145, they send you the receipt and you pay them £145 from the receipt. This is an expense claim and no P11D is required. If you paid this employee £200 and they could spend any amount for the hotel there is a benefit in kind and a P11d is required

Hi Caraxx,
You do not need to report or pay anything to HM Revenue & Customs.
Please see Expenses and benefits: credit, debit and charge cards for further guidance.
Thank you.

 

Thank you both for these answers. I do have a couple of queries regarding the article from the link: - it refers to "covering the cost of credit, debit or charge card payments made by your employees" - it does not refer to cash payments made by employees and then reimbursed by the employer. Are there any rules/instructions regarding this? - it also states (to be exempt): "your employee makes it clear during the purchase that they’re acting on behalf of your business" and "the supplier accepts that the purchase is on behalf of your business". When you purchase something in a shop, buy a bus ticket or whatever, you don't tell the checkout operator, bus driver or other vendor what the purchase is for. It would seem, therefore, that these expenses reimbursements DO need to be reported on a P11D (but no tax or NI is due). What is the reason for this telling the supplier that the purchase is on behalf of the business and what is the point of reporting on a P11D if there is no tax or NI to pay?

Hi 
Please contact the Employer helpline here:
Employers: general enquiries
Who will be able to assist further with this.
Thank you 

I have already tried searching the website and have tried the digital assistant. Neither was any help. The page that your link goes to does not offer any other option apart from phoning or writing. I will not phone HMRC since the time on hold is far too long and the agents are not sufficiently trained to answer enquiries. I recently phoned regarding a different matter and after waiting a very, very long time and typing in security details, I was put through to a very nice agent who after making me do the security again (!) was unable to help. I have since raised a complaint regarding this which has been upheld and an apology and compensation given to me. My mental health will not survive going through this process again. Surely there should be some written guidance regarding this situation for P11D and whether or not one is needed. There must be tens of thousands of employees who receive exact reimbursement only for expenses, sometimes in cash, and who don't tell the vendor that the transaction is on behalf of their business (since it would be ridiculous to, for example, tell a bus driver or checkout operator this information).

Hi Caraxx,
As you are paying genuine business only expenses back to the employee to the actual value paid there is no need to report anything to HM Revenue & Customs on a P11D.
Please see this link:- Expenses and benefits for employers: Exemptions and dispensations
Thank you.

 

Thank you for your reply. The article that the link points to clearly says that you don't have to report *some* expenses and then gives a very short list of four types. What if the item(s) purchased were not one of those 4 types? This article also seems to be a contradiction to the one in the previous link which talks about ensuring that the vendor has been advised that the purchase is for business. I will keep a copy of this forum post and not report these reimbursed expenses, as per your advice, however I would like this issue to be escalated with a request that clearer guidance can be obtained from the HMRC website in future. Thank you.

Hi Caraxx,
We are unable to list every example of expenses.
Please see:
Purchases on employer’s behalf
If you are still unsure. 5.20 Businesses are often run in such a way that employees make payments on their employer’s behalf.
For example, an employee may buy stamps, stationery and items of equipment for the employer and be reimbursed the costs incurred from petty cash or by cheque.
Such transactions are not providing the employee with either earnings or expenses because the employee has received no money of their own.
Accordingly such reimbursements do not feature on form P11D.
Thank you.