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Goodbye to the P11D dispensation

Goodbye to the P11D dispensation

From 6 April 2016 an exemption from paying tax & National Insurance on qualifying business expenses will be introduced.

It will no longer be necessary to report these expenses on form P11D or to apply for a P11D dispensation.

The types of expenses typically included in a dispensation are business travel expenses, business entertaining, professional fees & subscriptions.

Whilst billed as simplifying admin, in reality this pushes more of the onus onto employers to make sure they get things correct.

HMRC will require businesses to put in place systems to ensure that only business expenses are reimbursed in this way, they will publish examples in due course.

Watch this space for further details…

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