Right now, when expenses are reimbursed to employees either a dispensation has to be obtained from HMRC, confirming that all expenses are 100% business related or, the expense must be reported on a P11D and a letter sent to HMRC by the employee confirming their claims were 100% business expenses. If neither of these happens the employee will be taxed on their reimbursed expenses.
To replace this cumbersome approach, with effect from 5th April 2016 an employer will simply need to ensure that if any expense reimbursements are not business related then they are included in the benefits reporting on P11Ds or by pay rolling.
For our clients and other small businesses, this means that genuine business reimbursement can take place without unnecessary administration and concern about adhering to complex and detailed regulation.
For bespoke and detailed advice on your company position please contact me in good time for the new tax year – Call me on 01273 882200.
All details above were correct at the time of publishing - for more up to date information please get in touch .
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