How to include expenses on tax return

[Prometheus]

I received some excellent on here back in June when DH received a letter from HMRC saying he had to complete a tax return for the year ending April 2015. I have been online today to complete it after gathering together dividend vouchers, P60 and interest statements.

I have a couple of queries that I wondered whether people would be able to advise on please?

Firstly, it asks if he has received expenses payments from him employer. He has received reimbursements from travel costs (i.e. flights, food etc) that he has paid himself. If I tick yes, it asks me to list the amount. I could trawl through bank accounts and tot up the value but he does not receive any accompanying docs, just an amount transferred into his account, not even with the reference 'expenses'. Should I try to find these, add them up and include them? Scared they will tax him on it when it is simply reimbursements for payments he has made and not income as such.

Secondly, one of the bank accounts we have received interest on is a joint account. Do I need to enter the full net interest amount? Does the fact that I have a tax allowance (and it is a joint account) not make any difference?

And finally, do I need to include any attachments? I could scan dividend vouchers, P60 etc. Do I need to do this?

Thank you very much for any advice

Expenses : did his employer not do a P11d that covers it all : you just transfer the information across.

Interest : his half only.

Send no attachments or copies of anything.

Nope, he's never received a P11d and neither have I in 12 years working for a number of different companies. All expenses payments have been reimbursements of things (such as flights) that he has to pay out of his own pocket. If I list his expenses (prob about £10,000) will it be taxed? I would hope not as it isn't an income....

So for interest, do I divide the interest by 50%? Is that acceptable?

Thank you

Is he still with the employer?

Yep he is. But I don't think P11ds contain expenses reimbursements do they? Just remembered I received one this year as I have medical insurance through work. Checked and it just contains the £250 medical insurance and none of my expenses reimbursements....

Right. Mentions of P11D are misleading.

His employer will very likely have a dispensation agreement with HMRC. This states that items that are typically put through as expenses (such as train fares to a business meeting, overnight hotel when away on business, flights to see an overseas client, subs to his professional body), and will attract no tax anyway, as they are wholly, exclusively and necessarily for the performance of his role, can be put through the company's dispensation agreement with HMRC (which the company do) and do NOT therefore go on his P11D, and do not need to be reported via the tax return.

If a dispensation does not exist, then literally every last little expense (your portion of the sandwich lunch laid on when you're having a lunchtime training session anyone?) would all need to be reported on an individual's P11D, and put in their tax return and backed out. If not, tax would be charged on the individual for all those items.

That's obviously not practical, and doesn't happen.

In short, please forget these already reimbursed expenses. You report what's on the P60, and P11D if there is one.

And doesn't it ask for only unreimbursed expenses, ie those that have not been reimbursed by the employer?

Good luck!

And report exactly 50% of the interest received of joint accounts.

The reason I mentioned the P11d is that if there is no P11d then they need not go on the tax return

the only expenses that would go on would be those that the employer does not reimburse like some professional body membership fees

Interset is generally 50:50 , but not always

as a rule of thumb use 50:50

Brill - thank you. What got me confused was that on the tax form it says reimbursed expenses which totally threw me. I think we're now ready to submit

Great stuff, glad to hear you're nearly there, it's such a faff hey!