Expenses and benefits: third-party awards

1. Overview As an employer, you have certain tax, National Insurance and reporting obligations if your employees receive third-party awards. What’s included Third-party awards are normally incentives provided by someone other than you. For example, if you run a car dealership, your employee might receive an award from a car…

Expenses and benefits: tool allowances

1. Overview As an employer providing a tool allowance to your employees, you have certain tax, National Insurance and reporting obligations. What’s included A tool allowance is a payment you give to an employee to buy tools that are only used for work. 2. What to report and pay Some…

Expenses and benefits: training payments

1. Overview As an employer providing training expenses for your employees, you have certain tax, National Insurance and reporting obligations. What’s included the cost of training related costs, eg books or travel expenses while training 2. What’s exempt You don’t have to report anything to HM Revenue and Customs (HMRC)…

Expenses and benefits: travel and subsistence

1. Overview As an employer paying your employees’ travel costs, you have certain tax, National Insurance and reporting obligations. This includes costs for: providing travel reimbursing travel accommodation (if your employee needs to stay away overnight) meals and other ‘subsistence’ while travelling Subsistence includes meals and any other necessary costs…

Expenses and benefits: vouchers

1. Overview As an employer providing vouchers to your employees, you have certain tax, National Insurance or reporting obligations. What’s included This includes vouchers that are: exchangeable for cash only exchangeable for goods or services There are different rules for childcare vouchers. 2. What to report and pay What you…

Expenses and benefits: trivial benefits

All benefits are taxable, but you can ask HM Revenue and Customs (HMRC) to exclude some of them because they’re so small. However, you still have tax, National Insurance and reporting obligations if you provide a benefit as a reward for service. HMRC are more likely to agree to exclude…

Expenses and benefits: works bus services

As an employer, you don’t have to report the cost of providing a bus to bring your employees to work. You don’t pay tax or National Insurance on these costs. The bus must be for journeys: between home and work from one workplace to another from work to shops or…

Expenses and benefits: subscriptions and professional fees

1. Overview As an employer covering the cost of your employees’ subscriptions and professional fees, you have certain tax, National Insurance and reporting obligations. 2. What’s exempt You don’t have to report anything to HM Revenue and Customs (HMRC) or pay tax and National Insurance if all of the following…

Expenses and benefits: sporting or recreational facilities

1. Overview As an employer paying for sporting or recreational facilities for your employees, you have certain tax, National Insurance and reporting obligations. What’s included This includes: sporting or recreational facilities that you provide directly, eg a gym vouchers that can be exchanged for the use of sporting or recreational…

Expenses and benefits: social functions and parties

1. Overview As an employer providing social functions and parties for your employees, you have certain National Insurance and reporting obligations. What’s included What you need to report and pay depends on: if it’s an annual event if it’s open to all of your employees if it costs more than…