Tax Documents
Professionally drafted, regularly updated documents each with its own "how to use" introduction

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Employee benefits and expenses (18)

Employee travel expenses policy
Since 6 April 2016 responsibility for determining whether business expenses reimbursed to employees and directors are exempt of tax and NI rests with the employer. Therefore, it's good practice to have a travel expenses policy in place. Business travelIncluding an Employee Travel Expenses Policy in your... Read more
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Type: Policy
Employee provision of home telephone policy
Employee - provision of home telephone policyIf one or more of your employees work from home and need a landline phone for work purposes, you might agree to provide the equipment and pay the rent and call charges. HMRC may argue that a benefit in kind charge arises because there is bound to be private... Read more
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Type: Policy
Employee loan letter
Where an employee or a director owes their employer more than £10,000 at any point during a tax year, a taxable benefit in kind arises. You need to work out the cash equivalent of this. Use this letter to write to any employees with loans to explain the basis you have used to calculate their taxable... Read more
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Type: Letter
Election for share value to ignore restrictions
If shares are acquired because of an individual's employment, they are liable to an income tax charge on the difference between the market value of the shares and the price paid by an employee, but special rules can apply where the shares have restricted rights. Use this election to have the restrictions... Read more
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Type: Form
Payrolling benefits in kind letter to employee
HMRC usually collects tax on benefits by adjusting an employee's code number so that extra tax is collected, through the PAYE system, each time they are paid salary. Payrolling achieves the same result but without intervention by HMRC. More accuratePayrolling involves you adding a notional amount to... Read more
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Type: Letter
Employee loan record
A taxable benefit may arise where a director or employee is provided with a loan, either interest free or at a favourable rate of interest. Use this document to calculate what, if anything, you need to declare to HMRC.Important to monitorWhere a cheap-rate or interest-free loan is made to a P11D employee... Read more
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Type: Form
Employee equipment allowance
Where your employees use personally owned or rented equipment for work, you can reimburse them the business element of their costs tax and NI free. Quantifying the amount you can pay without having to apply PAYE can be tricky, especially where there is personal and business use of the equipment.When... Read more
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Type: Form
Employee expenses claim form
Where an employee or director claims expenses from your business you should ask them to provide details for your accounting and tax records. The need to keep recordsEach employee who claims business expenses over the year should keep all their receipts which match the figures entered on the Employee... Read more
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Type: Form
Employees using their own cars for business policy
If employees use their own vehicles for business journeys, you should have a company policy which spells out the situation regarding insurance, parking and mileage rates at which you will reimburse them. Tax-free mileageYou can pay any reasonable amount to an employee as compensation for using their... Read more
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Type: Policy
Employee expenses policy
From 6 April 2016 responsibility for determining whether business expenses reimbursed to employees and directors are exempt of tax and NI rests with the employer. To aid with this it's good practice to have an expenses policy in place. Evidence of a legitimate claimHMRC wants to know that you have a... Read more
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Type: Policy
PAYE settlement agreement letter
A PAYE settlement agreement (PSA) can be used where you want to meet the PAYE tax and Class 1A NI liability in respect of small or irregular taxable benefits you provide to your employees. Typically, you are most likely to use a PSA where it would be inappropriate for you to expect your employees to... Read more
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Type: Letter
Alternative interest calculation method letter
Where an employer provides a cheap rate or interest-free loan there's more than one way to work out the taxable benefit - the normal averaging method or the alternative precise method. You can elect to substitute the figure calculated using the normal average method for the alternative precise one.... Read more
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Type: Letter
Mobile phone declaration
The old rule was that you could have as many mobile phones as you liked, tax and NI free. Now it's down to one per employee. If you have more than one, you will need to declare which one is to be your tax-exempt phone.Choose your exempt phoneThe tax exemption for employees who are provided with a mobile... Read more
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Type: Miscellaneous
Employee loan agreement
To avoid a payment to an employee/director being treated (and taxed) as additional salary, you could reclassify it as a fixed-rate loan. What documentation will HMRC need to be convinced about this?Inexpensive financeThe income tax paid by a director or employee on a subsidised loan provided by their... Read more
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Type: Agreement
Employees' incidental overnight expenses policy
If an employee has to stay away overnight on business, there are some tax and NI-free expense payments you can make. To achieve this you'll need to have a company policy in place to avoid an employee claiming for the wrong amounts, which is what a visiting tax inspector would go looking for. Expense... Read more
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Type: Policy
Employee homeworking expenses policy
The increasing tendency for individuals to work from home raises the question of which home-related costs can be reimbursed tax free by an employer. So you'll need a company policy making it clear to your employees which expenses come with a tax bill. Working from homeThere has been a very large increase... Read more
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Type: Policy
Electronic devices policy
When removing the Home Computer Initiative back in 2006, HMRC accidentally opened the door to charging tax on private use of any electronic device, such as a laptop or tablet, provided to employees by their company. How can you prevent a tax charge from arising?Computer-related equipmentTablets and laptops... Read more
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Type: Policy
Employee scale rate clearance letter
Where you have a number of directors or employees who travel frequently, you can reduce the administration involved in processing their expense claims by giving them a flat rate allowance to cover items such as lunch and dinner. However, to avoid having to deduct tax on the amounts paid, you'll need... Read more
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Type: Letter