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Tax dispenser

17 May 2011
Issue: 4304 / Categories: Forum & Feedback , Employees , Income Tax
A company in the security industry employs more than 500 guards under PAYE and would like a dispensation to cover travel and subsistence costs

We act for a limited company in the security industry that employs more than 500 guards all on PAYE.

Back in 2008 the clients were told by other operators in the sector that they could apply for a special dispensation to HMRC regarding travel costs incurred by employees getting to their sites and also for subsistence.

The basis of this was that – once granted – the first say £20 a week would be classed as a disbursement reimbursement for wages-processing purposes.

The knock-on effect was obviously a reduction in employer and employee National Insurance contributions and PAYE tax.

We looked into this extensively but the problem was that a large percentage of the static guards were working on the same contracts necessitating the same journeys over a long time.

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