Expenses and Benefits

Expenses and Benefits The Basics

We are starting a new series regarding what expenses can be claimed through Guide UK Ltd

The basic rule is that if you provide an employee with anything other than pay it may count as an expense or benefit, and you will need to check whether you need to report it to HM Revenue & Customs (HMRC) and pay any tax or National Insurance contributions on it to HMRC.
Common examples of expenses and benefits include company cars, health insurance, travel and entertainment expenses.

Your tax, National Insurance contributions (NICs) and reporting obligations differ depending on the specific expenses and benefits you provide to your employees. In general, one of the following five requirements will apply in each instance:
  • At the end of the tax year you report the item on the employee's form P9D or P11D and - where a P11D is completed - pay Class 1A NICs on it.
  • You treat the expense or benefit as if it were normal earnings, adding its value to your employee's other earnings when working out PAYE (Pay As You Earn) tax and Class 1 NICs using your usual payroll procedures.
  • You add the item's value to your employee's earnings for Class 1 NICs purposes only (not for PAYE tax) through your payroll. Then at the end of the tax year you report it on the employee's form P9D or P11D.
  • You have no tax or NICs to pay, but at the end of the tax year you report the item on your employee's form P9D or P11D.
  • You have no reporting requirements and no tax or NICs to pay.

But in Guide UK we have solution for it you do not need to file any paperwork for you expenses as Guide UK has HMRC approved dispensation scheme.
http://www.guideukltd.co.uk/, Phone no. 01235-468420, 01235-424334


A dispensation is a notice from HM Revenue & Customs (HMRC) that removes the requirement to report expenses and benefits on forms P11D or P9D. Also, if an item is covered by a dispensation it means you don't have any tax or National Insurance contributions to pay on it.

At Guide UK we are responsibly and thoroughly checking your expense claims and providing you guidence regarding these expense claims so that you can be beneficial by getting as much return of your hard earned wages. If you have any query please contact us on 01235 424334, 01235 468420
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