Employee Expenses and Dispensations

After the end of each tax year, employers have to inform HMRC of certain expenses payments, benefits and facilities provided to most employees and directors. They must also provide information on any relevant payments made to an employee's or director's family.

A separate form P11D is needed for each employee or director, and a copy of the relevant information must also be provided to the indivdual concerned.

Form P11D(b) is used to declare the amount of Class 1A national insurance contributions (NICs) that are payable, and needs to be completed and signed if there are expenses payments or benefits being supplied on form P11D.

In many cases, it may be possible to apply for a dispensation, thereby eliminating the requirement for forms P11D. This can apply for those expenses for which an employee would usually be able to claim as being wholly, exclusively and necessarily incurred. Some of the main expenses might include:

• Business entertainment costs
• Credit cards used for business purposes
• Telephone expenses
• Fees and subscriptions
• Travel and subsistence expenses

We can help you to decide whether to apply for a dispensation and, if necessary, change expense payment procedures so that a successful application for dispensation can be made.

Dealing with employee expenses can be something of a headache. This is where Allum Book-keeping Services can assist businesses, lightening the load by managing your employee expenses payments and P11Ds on your behalf so you don't have to.

Employers are faceing an increasing number of record-keeping and reporting requirements. We can help by taking care of the administrative burden from you with our effective payroll solutions.

To find out more about how Allum Book-keeping Services can help with your employee expenses and dispensatios please do not hesitate to contact us today.

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