½Û×ÓÊÓƵ

Expenses

Produced by a Tolley Employment Tax expert
Employment Tax
Guidance

Expenses

Produced by a Tolley Employment Tax expert
Employment Tax
Guidance
imgtext

Expenses introduction

The guidance note deals with the PAYE treatment of expense payments made by the employer as well as how an employee may claim expenses which are not reimbursed.

Depending on the nature of the expenses and how they are met, there may be reporting requirements to HMRC as well as potentially both tax and NIC liabilities on those amounts. See Simon’s Taxes E4.420 and HMRC guidance at EIM01110 and NIM05000.

Expenses ― signposting guidance

There is a large range of expenses. For a useful A-Z guide of expenses and benefits with brief details on the tax and NIC treatment as well as the reporting requirement, see the A–Z of benefits in kind and expenses payments guidance note. HMRC guidance can be found in CWG2, Chapter 5.

There are a range of guidance notes on specific areas of expenses which come up regularly. Some of these are listed below for convenience:

  1. •

    Travel expenses

  2. •

    Subsistence expenses

  3. •

    Incidental overnight expenses

  4. •

    Overseas business expenses

  5. •

    Fixed deductions for expenses

  6. •

    Round sum allowances

For

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+â„¢
Powered by
  • 03 Feb 2025 06:40

Popular Articles

Tax on UK resident beneficiaries of non-resident trusts ― overview

Tax on UK resident beneficiaries of non-resident trusts ― overviewIntroductionUK resident beneficiaries of non-resident trusts are subject to UK tax on payments or benefits received from the trust. They are liable for income tax on income distributions from the trust and they may also be liable to

14 Jul 2020 13:47 | Produced by Tolley Read more Read more

Corrections and amendments to the IHT account

Corrections and amendments to the IHT accountThis guidance note explains how to deal with changes to the taxable values in the original inheritance tax account.Why do amendments arise?When the IHT account is first submitted to HMRC, it is based on information available at an early stage of the

14 Jul 2020 11:20 | Produced by Tolley Read more Read more

Exemption ― insurance ― overview

Exemption ― insurance ― overviewThis guidance note provides an overview of the VAT treatment of insurance products and should be read in conjunction with the Insurance ― specific transactions and Exemption ― insurance ― brokers and agents guidance notes.Is insurance exempt from VAT?Supplies of

Read more Read more