
There is no requirement to report certain routine expenses to HMRC. The types of expenses and benefits covered are referred to as exemptions and have replaced dispensations which can no longer be applied for.
The travel and subsistence benefits that do not need to be reported include reimbursed costs to employees covering business travel. As an alternative to paying the employee back for actual costs incurred, HMRC’s benchmark scale rates or a special bespoke scale rate may be used. Employers only need to apply for an exemption if they want to use a bespoke scale rate which needs to be approved by HMRC.
Employers that reimburse their employees with more than the necessary costs need to take action. The extra amounts should be added to employee’s other earnings and PAYE and Class 1 NIC’s will be due.
There is usually no tax relief for private travel between a permanent workplace and an employees’ home. Accounting for any tax due on private travel depends on who arranged the transport and who paid for it. There are a number of exceptions such as temporary workplaces and where the employee has a travelling appointment.
Employers must also ensure that they have a checking system in place to ensure that employees are making valid expenses claims. This requirement is usually satisfied by asking employees to submit or retain receipts as evidence of a valid expense claim. HMRC is clear that employees aren’t allowed to check their own expenses and that someone else within the company must be responsible to ensure a claim is legitimate.
A couple in their late sixties own a home worth £750,000 and have £700,000 in savings and investments. Their combined...
A pharmacy can look profitable on paper while still facing tight cash flow. NHS income, retail sales, dispensing margins, staff...
Capital Gains Tax is becoming increasingly important for UK crypto investors as HMRC gains access to more detailed information about...
A sole trader may have completed the first MTD quarterly update without realising that the next deadline is already approaching....
A client came to Apex Accountants last week, a sole trader with two income streams, unsure whether she had met...
We are increasingly asked the same question by clients who have heard about Making Tax Digital but are not sure...
Miss a tax deadline today and HMRC charges 7.75% a year on the outstanding balance. The Bank of England’s base...
The government’s announcement, made in July by new Prime Minister Andy Burnham as one of his first acts in office,...
For UK taxpayers asking “What happens to my Personal Allowance if I earn over £100,000?”, the answer depends on HMRC’s...
For UK employees, pensioners and employers asking, “What should I put for personal allowances?”, the answer depends on the person’s...