ARCHIVE
NEWS
BUSINESS
ARCHIVE
NEWS
BUSINESS
MAY 2017
OUR
PROCESS
GET IN TOUCH
WITH US
GET TO KNOW
US
Registered office: 61 Friar Gate, Derby, Derbyshire, DE1 1DJ T: 01332 202660
Adrian Mooy & Co is the trading name of Adrian Mooy & Co Ltd. Registered in England No. 05770414
Last year saw an important change to the way tax-deductible business expenses, which are paid to employees, are dealt with.
Until the beginning of the 2016-17 tax year, employers who did not have a dispensation from HM Revenue & Customs (HMRC) were required to report benefits and expenses paid to employees.
Now, these dispensations have been abolished and such expenses are no longer reportable to the revenue.
The move means that businesses that did not have a dispensation in place will no longer have to deal with the considerable administrative burden of completing P11D. But the change is that employers are now required by law to have a system in place for validating expense claims.
Additionally, the new exemption does not apply in circumstances where a reimbursement is in conjunction with a salary sacrifice scheme.
The same raft of changes have also impacted on the procedures for trivial benefits in kind. The changes mean that any benefit that meets the following criteria set out by HM Revenue & Customs is exempt from income tax and national insurance:
The rules differ slightly for office holders of the company, family members and members of the household. In these cases the exemption is capped at £300 in total for the tax year.