Confused about tax? Todays tax blog posts breaks down the nitty-gritty of tax compliance with a focus on CIS Repayments, VAT returns and Employee Expenses.
As of 6th April 2016, if the amount paid is a valid business expense they are tax and NI exempt. Therefore doesn’t have to be reported on a P11D for 2016/17.
The allowance for meals taken while travelling have been changed – SI 2015/1948. The employer can now choose whether to reimburse meal costs at those rates or use a special method that must be agreed with the HMRC.- ITEP 2003, s 289B.
HMRC will conduct a ‘sampling exercise’ to obtain a random selection of expenses that were actually incurred by employees. This will help determine what a reasonable rate will be.
We suggest employers periodically do random sample checks of their employees to see if their claimed expenses are genuine and a definite business expense. Guidance can be found in the HMRC’s Income Manual Par EIM30270.