The deadline for submission of P11D Expenses and Benefits returns has now passed. HMRC are already sending out tax code changes for employees who have been reimbursed for business expenses and these will need to be applied from the next payroll.
Reimbursed business expenses are not taxable and therefore the employee's tax code should not change. We have provided employees with a copy of the P11D and an S336 declaration for them to sign and send to HMRC confirming that these are business and not personal expenses. Despite this HMRC are still implementing tax code changes and have said that they would not be dealing with P11Ds until at least August! In the meantime employees will be taxed incorrectly for being reimbursed for business expenses.
HMRC seem to create so much work for business owners and themselves and then put employees into a situation where they have to pay more tax than they should. Surely all information relating to P11Ds should be considered before sending a tax code change? Or is that too logical for HMRC?