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This P11D section is divided into five subsections, each focusing on a specific aspect:
- ✈️ Travelling and subsistence payments:
- Total amount spent on fares, hotels, meals etc.
- 🍿 Entertainment:
- Total of all payments made exclusively for business entertaining.
- Entertaining includes the cost of food and drink, the hospitality of any kind and gifts (unless the gift costs less than £50 a year, is not food, drink, tobacco or a voucher and includes a conspicuous advertisement). All types of payments should be considered.
- If you carry on a trade, business, profession or vocation, you should also enter the following:
- A tick in the box if any expense payments have been, or will be, disallowed in your business’s tax computations.
- A cross in the box if none of the expense payments has been, or will be, disallowed in your business’s tax computations – staff entertainment only.
- ☎️ Payments for the use of home telephone:
- The cost of all home telephone bills is reimbursed or paid directly by the employer on behalf of the director, employee or family member or household member. This is the cost of all private calls and the total rental charge.
- However, if the employer paid for a second line in the employee’s home to be used purely for business purposes, no tax or NIC liabilities would arise.
- 🏠 Non-qualifying relocation expenses:
- Any amounts that your employees should have paid but you paid instead. All expense payments that do not qualify for relief.
- Non-qualifying items include compensation payments for the loss on the sale of the former home, additional housing cost allowances and forwarding post.
- 🧾 Other expenses:
Final catch-all section to report any items not previously reported elsewhere on the P11D form unless they are exempt from tax by statute or are included in a dispensation.
Examples of what can be entered here include:
- National Insurance contributions.
- Ancillary services provided with living accommodation.
- Private accountancy bills.
- Employee's legal fees.
- Wages for personal or domestic staff, e.g. chauffeuring costs.
- Cost of work carried out at the employee's home or on their property by the employer's workers or contractors.
- Employee’s traffic and parking fines.
Please note – This guideline is not exhaustive, and it does not cover every eventuality. Its main focus is on the most typical scenarios that usually happen in reality. It's important to be aware of other possibilities as well. If you need more detailed information, please refer to the HMRC website. Always consult a tax advisor if you have any doubts or queries.