What all to include in the expenses form?

Filling the P11D expenses form can be a really difficult task especially for larger organizations. The expenses form is to be filled for all the directors and employees earning more than 8,500 pounds an year and is supposed to be submitted by 6th of July every year. The expenses policy is very complex and hence it becomes important to understand what all expenses to include and what not. Even though the list of expenses and benefits to be included is very large, this is a list of some of the more common expenses submitted by almost every company:

• Company Car: A private vehicle for an employee is taken as a benefit and is taxed depending upon the CO2 emissions of the vehicle. The higher the emissions the greater is the tax charged.

• Fuel: If the company pays for the fuel used in an employee’s car, the cost incurred is taken as a benefit to the employee and hence is taxable. It would be exempted only if the fuel was used entirely for business travel, making it business expenses.

• Travel expenses (Mileage): An employee can use his own car for business purposes and get tax exemption. The exemption would not hold if the company reimburses more than 40p, after which the excess amount becomes an expense and hence is taxable.

• Mobile phone: If the contract is between the Phone Company and employee and the company pays for it, the line rental and any no business calls made are taxable.

• Entertainment and travel expenses: A record has to be entered on the expenses form however a claim can be later made if the expenses were for business purposes

• Loans: Interest free loans or loans given at low interest rates are taxable. These are some of the most common expenses that are usually submitted by almost every company. Also submitting these expenses in the form are equally important, therefore using a software or a professional with complete knowledge can assure error free and correct work. This will also help in saving yourself from facing any penalties.