CIC Association

Serving Community Enterprise

how to report NICs due on expenses if the expenses can't yet be paid because of lack of income!

Help, please! I am completely confused about how to deal with NICs due on expenses for our relatively new CIC. There is such a minefield of requirements out there that it is very hard for a single, already hard-pressed individual to keep on top of everything that must be done to run a CIC!

Background: This is the first time I've had to report as we started in Jan 2011. I'm the sole active person in the company, and have made a considerable loan to the company to do the necessary development before we are in a position to start trading. I have made a lot of business journeys and intend to pay back the expenses to myself at 40p/mile once the company is in a position to do so.

Salary for 2011-12: total for the year = £4,500.

Question: what do I do about reporting this for NICs? I have form P35NilEmployer for a nil tax return, and it looks like I should answer NO to the question "Is form P11D(b) due?". However, elsewhere on the HMRC site, I see that I have to use form P9D instead, and there is no option for not reporting.

My problem is that I have not received expenses from the company at all, but hope to receive back-dated expenses in a future tax year. How can I report that??

I tried phoning the Tax office, but of course they are on strike today!

Thanks, friends!

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