ÑÇÖÞÉ«ÇéÍø

Expenses


Produced by a Tolley Employment Tax expert
Employment Tax
Guidance

Expenses


Produced by a Tolley Employment Tax expert
Employment Tax
Guidance
imgtext

Expenses introduction

The guidance note deals with the PAYE treatment of expense payments made by the employer as well as how an employee may claim expenses which are not reimbursed.

Depending on the nature of the expenses and how they are met, there may be reporting requirements to HMRC as well as potentially both tax and NIC liabilities on those amounts. See Simon’s Taxes E4.420 and HMRC guidance at EIM01110 and NIM05000.

Expenses ― signposting guidance

There is a large range of expenses. For a useful A-Z guide of expenses and benefits with brief details on the tax and NIC treatment as well as the reporting requirement, see the A–Z of benefits in kind and expenses payments guidance note. HMRC guidance can be found in CWG2, Chapter 5.

There are a range of guidance notes on specific areas of expenses which come up regularly. Some of these are listed below for convenience:

  1. •

    Travel expenses

  2. •

    Subsistence expenses

  3. •

    Incidental overnight expenses

  4. •

    Overseas business expenses

  5. •

    Fixed deductions for expenses

  6. •

    Round sum allowances

For

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+â„¢
TAKE A FREE TRIAL NOW
Powered by
  • 17 Jun 2025 06:21

Home/ Tolley Tax Guidance/ Employment Tax / PAYE for employees

Popular Articles

Class 1 v Class 1A

Class 1 v Class 1AClass 1 and Class 1AClass 1 and Class 1A are the categories of NIC that can be charged on expenses reimbursed and benefits provided to employees. These classes are mutually exclusive. A benefit cannot be subject to both Class 1 and Class 1A NIC. Three requirements must be met

Read more Read more
Personal Tax

Simple assessments

Simple assessmentsFrom 2016/17 onwards, HMRC has the power to make a ‘simple assessment’ of the taxpayer’s income tax and / or capital gains tax liability outside of the self assessment system. As HMRC already receives significant amounts of information on the income received and tax paid by

14 Jul 2020 13:40 | Produced by Tolley Read more Read more
Employment Tax

Parking provision and expenses

Parking provision and expensesCar parking facilities at or near to the employee’s workplaceThere is an exemption from tax and NIC where an employer provides parking, or pays for or reimburses an employee for the costs associated with car parking at or near the place of work; there are no reporting

14 Jul 2020 11:09 | Produced by Tolley Read more Read more