Tax for business owners: Changes to expense claims

  • by Carole Jordan
  • 27 Nov, 2015
The Office of Tax Simplification (OFTS) has recommended a really useful change in expenses reporting. The effect on small businesses is, thankfully, that life gets a little simpler!

Changes to expense claims

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 .

You might also be interested in...

Why not leave us a comment, or share with a friend...

Want free advice for your small business?
Sign up to our blog

Browse our other Small Business posts

Our latest blog

by Carole Jordan 11 Aug, 2017

HMRC have released their new advisory fuel rates for drivers of company vehicles. These came into effect from 1st July and allow reimbursement of fuel tax free at these levels.

by Carole Jordan 04 Aug, 2017

Nobody wants to pay tax on divorce. So how do you keep your tax bill down while coming to a sensible arrangement with your spouse?

by Carole Jordan 28 Jul, 2017

Since the change to Dividend tax came in you may be wondering if there are more tax efficient ways of drawing funds from your company.  Read more for an idea that can save tax each year.

by Carole Jordan 18 Jul, 2017

I love the summer for sitting back and reflecting on the year. Thinking back to the dark days of winter and forward to the joy of Christmas time. Now is the ideal time to review how your business is going and as you revive yourself through holidays and sunshine you’ll be well placed to make any changes come the autumn.

by Carole Jordan 17 Jul, 2017
Landlords will be expected to use Cash Basis Accounting from 2017/18.  
So what does that mean for your rental property accounts and tax?
More posts

Which Small Business support are you looking for?

Share by: