Expenses and benefits for employers
Exemptions and dispensations
You do not have to report some routine employee expenses to HM Revenue and Customs (HMRC). This is called an 바카라 사이트˜exemption바카라 사이트™.
Exemptions have replaced dispensations. You cannot apply for a dispensation any more.
Expenses covered by an exemption
You do not have to report certain business expenses and benefits like:
- business travel
- phone bills
- business entertainment expenses
- uniform and tools for work
To qualify for an exemption, you must be either:
- paying a flat rate to your employee as part of their earnings - this must be either a benchmark rate or a special (바카라 사이트˜bespoke바카라 사이트™) rate approved by HMRC
- paying back the employee바카라 사이트™s actual costs
You must deduct and pay tax and National Insurance on all other expenses and benefits you give to your employees. Report them to HMRC as normal.
Apply for an exemption
You do not need to apply for an exemption if you바카라 사이트™re paying HMRC바카라 사이트™s benchmark rates for allowable expenses.
You only need to apply for an exemption if you want to pay bespoke rates to your employees.
You바카라 사이트™ll have to give HMRC evidence that the rates you바카라 사이트™re suggesting are based on your employees바카라 사이트™ actual expenses.
If you had a dispensation from HMRC
Your dispensation will not apply after 5 April 2016, but the expenses covered by it should also be covered by the exemption.
If your dispensation included bespoke rates and was agreed after 6 April 2011, you can ask to use the same rates when you apply for an exemption.
You can only use the bespoke rates for up to 5 years from the date they were last agreed.
Checking expenses
You must have a system in place to check payments you make at benchmark or bespoke rates.
Your employees cannot check their own expenses.
Tell your employees to keep proof of their expenses, for example receipts or bills, in case you need to check them.