.png)
.png)
21 September 2015
Employers will no longer need to apply for a dispensation or report those expenses on form P11D.
An exemption from paying tax and National Insurance on qualifying paid or reimbursed expense payments will be introduced from 6 April 2016.
As a result when an employee is entitled to a fully matching tax deduction the employer will no longer need to apply for a dispensation or report those expenses on form P11D.
All other non-allowable expenses will remain subject to tax and National Insurance. Employees will still be able to claim tax relief from HMRC for non-reimbursed expenses.
The new exemption does not apply to expenses or benefits in kind provided under a salary sacrifice arrangement. After 5 April 2016 any expenses payments to employees under these arrangements will need to be made after deducting tax and National Insurance.
All dispensations agreed with HMRC will...
Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
