Expenses and Benefits

by Sarah Laing
access120 days access
cpd hours4 CPD hours
price£75+vat

This course will enable you to:

  • Understand the tax rules relating to expenses payments and benefits-in-kind
  • Know how to calculate the tax charge
  • Recognise certain expenses and benefits which can be received tax-free
  • Understand employers’ reporting and compliance obligations

There are various rules for calculating, reporting and paying tax on expenses and benefits. And there are severe penalties for failing to adhere to these rules. It's important for anyone who works in payroll or finance to understand the ins and outs of the benefits code.

Employers who provide expenses or benefits to employees or directors may need to notify HMRC and pay tax and NICs. The same goes for employees who receive them.

This course provides a useful overview of this area of tax, before moving on to look at specific rules for common expenses and benefits, and employers' reporting and payment obligations.

Overview

  • What are expenses?
  • What are benefits in kind?
  • What is the benefits code?
  • What is form P11D?
  • What taxable charges do employees have to pay on expenses and benefits?
  • How do HMRC collect tax through an employee's PAYE code?

Expenses

  • What are the rules for claiming tax relief on expenses?
  • What travel and subsistence expenses are allowable?
  • What travel and subsistence expenses are taxable?
  • What are approved mileage allowance payments?
  • What are the tax rules for foreign travel expenses?
  • What non-travel expenses are exempt from tax?

Benefits

  • How do you calculate tax on BIKs?
  • How do you calculate tax on company cars and fuel?
  • What are the tax charges on employer-provided vans?
  • How is the provision of childcare taxed?
  • What is the Tax-Free Childcare scheme?
  • What are trivial benefits?
  • What tax-free benefits are available?

Employer obligations

  • What are employers' reporting obligations?
  • What is payrolling?
  • What is a PAYE Settlement Agreement?
  • What are the deadlines for PSAs?
  • What NICs do employers have to pay on expenses and benefits?
  • What are the penalties for late payment of Class 1A NICs?

Sarah Laing is a Chartered Tax Adviser. She has been writing professionally since 1998 when she joined CCH Editions as a Senior Technical Editor, contributing to a range of highly regarded publications including the British Tax Reporter. She became Publishing Manager for the tax and accounting portfolio in 2001 and later went on to help run CCH Seminars (including ABG Courses and Conferences).

Sarah originally worked for the Inland Revenue in Newbury and Swindon Tax Offices, before moving out into practice in 1991. She has worked for both small and Big 5 firms, and now works as a freelance author providing technical writing services for the tax and accountancy profession.

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