Employee Expenses and Dispensations in Leamington Spa

Following the introduction of Real Time Information (RTI), employers must submit information to HMRC regarding deductions they have made for PAYE, NICs and student loans when or before each payment is made, rather than at the end of the year.

Employers still need to complete forms P11D and P11D(b) in respect of taxable benefits and allowances.

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

It is often possible to apply for a dispensation, thus removing the need 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. Such expenses might include:

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

We can assist you in determining whether to make an application for a dispensation and, if needed, change expense payment procedures so that such an application for dispensation will be successful.

Dealing with employee expenses can be something of a headache. This is where Michael Harwood & Co can help Leamington Spa businesses, lightening the load by dealing with employee expenses payments and P11Ds on your behalf.

Employers are faced with more and more reporting and record-keeping requirements. Allow us to help by taking the burden from you with our effective payroll solutions. Contact us today.