I don't know about you, but I'm delighted that David White a Partner in Charterhouse a practicing firm of Chartered Accountants based in Beaconsfield wants to guide local businesses towards good practice. The fact that this ultimately saves you time as well as money is even better!
When we met, David chatted to me about Expenses and Benefits in Kind. This is what he told me word for word.
It is essential that you keep records of any expenses and benefits that you provide to your employees. You’ll need these records to make sure that your forms P11D, P9D and P11D(b) are accurate at the end of the tax year, and to ensure that you and your employees pay the correct amount of tax and National Insurance contributions.
Your records must enable you to demonstrate that your end of year expenses and benefits returns are accurate. You should record the date and details of every benefit and expenses payment you provide, and retain any documentation relating to them. For example, if you reimburse an employee’s travel expenses you’ll need to keep a record of when and why the travel costs were incurred, and where possible retain the receipts. You must also keep a record of any payments made by your employees to contribute to the cost of the expense and benefits that you provide to them. Keeping your records on an employee by employee basis is also sensible.
As a director of your own company you will be required to maintain records for P11D purposes, in addition anyone you employ that earns over £8500 per year will also need to have a P11D form completed for them. The P9D is for employees earning less than £8500 per year. In addition to the company reporting an individual will also need to report the expenses and then make a claim that these expenses are not taxable income.
This is all rather tedious and time consuming. But there is a way to simplify the process for you and your company. You or your accountant can apply to HMRC for a dispensation which removes the requirement to report expenses and benefits at the end of the year. There is also no need to pay any tax or national insurance on items covered by the dispensation. Once granted dispensations last indefinitely.
The main expenses routinely covered by dispensations are travel, fuel for company cars; hire car costs, telephones, business entertainment, credit cards used for business, fees and subscriptions.
Please do be in contact with David White as he is keen to help anyone that is having issues with regards to completing their end of year Benefit in Kind forms. Has your accountant discussed dispensations with you? I doubt it because the completion of these forms and then making the claim on your tax return all takes time and accountants can bill you for that. To apply for a dispensation is a one off and non-recurring cost.
The reason you should meet up with or refer business colleagues to David White of Charterhouse Accountants is because he does deliver, he does speak your language, and you will get no fancy words or technical jargon from him!! He is always more than happy to go over the same ground time and time again until you are happy that you understand.
Please do recommend David; all initial meetings are totally free of charge and I am confident that something positive will always come out of any meeting.
Proper planning and saving tax REALLY is David’s game.
He is David White your local accountant and…….
He helps you look after the pennies so that the pounds can look after themselves.
You can call David any time on 01494 680068 to set up a FREE initial meeting in which he is happy to give advice whether or not you decide to become a client.
Charterhouse - the accountancy firm with a heart for local businesses.
Member since: 29th June 2012
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