- Travel expenses
- The abolition of P11D dispensations
- New trivial benefit rules – for employees and company directors
Where employees claim travel and subsistence it must only be for a qualifying journey and it cannot include travel to and from a permanent place of work. This whole area has been subject to HMRC scrutiny over the years and has been further tightened particularly for certain contractors. Where contractors are working through an ‘umbrella company’ (employment intermediaries) or through their own company where ‘control’ (or IR35) can be demonstrated applying HMRC’s tests the travel expenses to the site where they are contracting can no longer be claimed.
For those employees where the journey is ‘qualifying’ the following may be claimed:
Travel & Expenses
(a) £5.00 where the duration of the qualifying travel in that day is five hours or more;
(b) £10.00 where the duration of the qualifying travel in that day is 10 hours or more; or
(c) £25.00 where the duration of the qualifying travel in that day is 15 hours or more and is ongoing at 8pm.
Directors (including family members who are also employees) are subject to an annual cap of £300 including VAT so that’s basically 6 lots of £50.
The annual function exemption of £150 per head (Christmas party allowance) still remains – don’t forget you mustn’t go over this or you lose it completely!
Help is Always at Hand
Call us today, or contact us to discuss your concerns and let us lay them to rest.