Pecuniary Liability

[LEE1981]

Hi,

I have a query on detailing with an expense from an Director who has paid for personal flights on his company credit card. He is happy for it to be dealt with as a P11D benefit or however it needs to be dealt with.

My understanding is that this is a Pecuniary liability as it is something of direct monetary value, if it wasn't on the company card it would have been paid from his salary after tax.

I am struggling to fully understand how to deal with this, do I add this as for an example a Bonus so it is taxed, (PAYE & NI), and then deduct as previously paid?

Then if this is the case it looks like I also add it to Section B of the P11D, which I don't fully understand as he would have already been taxed on this via his salary.

I have tried to search but cannot find information on how to deal with this.

Thanks in advance.

[bd6759]

It’s not a pecuniary liability. It’s a company credit card. It goes at section C of P11D - “vouchers and credit cards”.

You also need to out the value through payroll for NIC purposes.

https://www.gov.uk/expenses-benefits-credit-debit-charge-cards/what-to-report-and-pay

Might be easier to have the director repay the personal expenditure.

[LEE1981]

Thanks that is very helpful. I was being told by others that as it is as pecuniary liability as the employer paid a debt which is owed by the employee and that it was of direct monetary value.

How would you show it on the payslip, I cannot find anything on this, would it go through the class 1 NI charged, no PAYE, and then also deducted off the payslip as it has already been received?

Would Box 3 on the P11D incur Class1A? Presumably not?

Many thanks