P11D problem

We recently filed online our client’s P11Ds for 2010/11. There is no dispensation and the forms included reimbursed expenses incurred wholly exclusively and necessarily in the course of each employee’s employment.

These expenses were included in section N of the P11D (‘expenses payments made to or on behalf of the employee’) and were recorded in the ‘cost to you’ box and in the ‘taxable payment’ box 16.

The P11Ds and associated s 336 claims were approved by the employees but nothing has yet been done with the claims as there is no facility to file these online (in previous years these were filed via the post with the P11Ds and were often ignored by HMRC).

HMRC are now issuing PAYE codes which either include a deduction for the reimbursed expenses but no allowance or an allowance but...