Unpaid director's expenses

Accounting
1

I’m trying to understand whether I need to file p11d or not.

The company has only three zero salary directors and no other employees. Consequently we have no PAYE set up since there are no payments being made.

Infrequently, the directors have paid for business items out of their own funds (rail travel, accommodation, subsistence, marketing print items - all of these have been 100% business use costs). These have been accounted for by raising purchase invoices and paying them from the Director’s Loan account. However, no money has yet been paid back to the directors from the company (as we are still in our start-up stages, so these have just been investment as far as we were concerned).

When I have looked at the p11d form online it asks for the company’s PAYE number, something we don’t have and don’t yet need, from what I understand.

Does the act of adding to the DL a/c mean an expense has been ‘paid’ to a director and we need the p11d? In which case, does this mean we need to register as an employer and for PAYE simply to get the reference numbers to complete it?

Many thanks to anyone who can help!

2

This is good read on P11d http://www.hmrc.gov.uk/payerti/exb/forms.htm#3

Best is if directors can actually pay cash to company bank and then company spend it for pure business use.

3

Thank you @FaradayKeynes

We have read through the HMRC guidance before, but weren’t left overly clear on when they determine payment to have been made to directors with respect to the DL a/c.

I rang the HMRC helpline a few minutes ago and have been told we do indeed need to register PAYE to get the reference code for filing the P11d, so I’ve answered that part at least.

4

Well P11d come in question when salary + benefit to employee goes over limit, I suggest spend all company expenses from company business account and not from director personal a/cs. Directors can fund company to run the biz and get money subject to condition tax free, no P11d hassle and no need to register for PAYE unless you pay even one employee salary subject to PAYE