White Collar Consultants Limited

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Expenses, Benefits & Tax


As I am sure you are all aware hmrc has their piece of the pie when it comes to expenses and benefits aka BIK (Benefits in kind) and in relation to this the terms P11D or P9D come to mind.
There are however some expenses or benefits that are non-taxable and some of the more common include:
– Mobile phones even when a small amount of personal use is present, but don’t be fooled this does not mean that the business can pay for your son’s new iPhone 6.
– The use of company computer equipment again one must bear in mind that this is only possible where an insignificant amount of personal use is evident.
– Annual staff parties, such as the annual Christmas party or BBQ during the summer, but be warned that this can only be one function a year and as with everything in hmrc there is a cap which is current set at £150 /    head / year, this can however include the transport to and from the event and accommodation if necessary.
– Annual health screening again limited to one screening per employee / year and the free eye tests for all employees using visual equipment such as computers as set out in the health and safety act is not regarded as a taxable benefit.
– Not to be snuffed at is the annual approved mileage allowance payments. Below is a table with the rates per employee per year for business miles travel in their personal vehicles, please do note that this does not include commuting to and from the usual place of business, unless to a temporary business site.



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