A key point remains is that if you have multiple accounts but they fall within the same group of banks /building societies, then the limits above apply on a group basis.
Do you wish that there was a simpler way of dealing with benefits in kind and that you could do away with P11Ds? Well in some instances this is going to be possible by processing certain benefits provided from 6 April 2016 onwards through the payroll, i.e. from the start of the 16/17 tax year.
Click on the links on the left hand side of the web page to go to different sections, which will talk you through the changes.
Whilst it does not necessarily spell the end to the admin of P11Ds, at least for some it provides a potential opportunity to ease the admin burden.
Since the Summer 2015 Budget, the government have been readying themselves to help us by doing away with some admin with effect from 6 April 2016. That’s right, less admin! Well, in some cases, please read on.
Currently for those instances where the practice pays for business expenses on behalf of employees, there are one of two ways this can be dealt with:
1. If the practice has a HMRC dispensation in place for the particular expenses in question, no further action is required, or
2. The business expenses have needed to have been included on P11D forms as a benefit in kind and then an associated Relief For Expenses (S336 form) form completed.
The end result of both 1 and 2 above is that the business expenses are not taxable.
From 6 April 2016, for business expenses incurred after that date by an employee and reimbursed by the practice, neither 1 nor 2 will be required. All current business expense dispensations will no longer apply from 6 April 2016.
HMRC have what are known as benchmark scale rates that are approved rates that can be provided to employees for a particular expense (without there being any tax or NI charges), instead of reimbursing the employee’s actual costs. Details of these can be found here.
Please note that the working rule agreements referred to in the link attached do not apply to veterinary practices.
An alternative to applying benchmark scale rates is to agree bespoke rates directly with HMRC, which can be used for five years, although there needs to be a particular business case for these.
In order to apply for a bespoke rate, you would need to provide HMRC with evidence, on a sample basis, that your practice’s employees would generally incur such expenses which are higher than the benchmark rates.
If you have already agreed bespoke rates with HMRC since 6 April 2011, then you will be allowed to retain these, without needing to re-agree bespoke rates with HMRC, until the fifth anniversary of that agreement. That said, in order to retain any current bespoke rates that you may have agreed, you would need to submit an application to HMRC to continue to use these.