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Where Taxpayers and Advisers Meet

New HMRC expenses exemption

Jetsetter4805
Posts: 22
Joined: Wed Mar 09, 2011 6:37 pm

New HMRC expenses exemption

Postby Jetsetter4805 » Mon Mar 12, 2018 2:15 pm

Hi All,

I'm a bit unclear if I need to apply for this new exemption if the only expenses to be paid are reimbursed travel costs of which there are supporting receipts. There are no per diem payments or other allowances being paid. Could someone please confirm?

Many thanks

SteLacca
Posts: 402
Joined: Fri Aug 07, 2015 2:17 pm

Re: New HMRC expenses exemption

Postby SteLacca » Mon Mar 12, 2018 2:49 pm

If the expenses are wholly, exclusively and necessarily incurred, such that the employee would get full relief, then there is no reporting requirement. You don't need to apply for an exemption in such cases.

If the expense would not be wholly, exclusively and necessarily incurred, then there is a reporting requirement. (S.336 ITEPA refers)

Jetsetter4805
Posts: 22
Joined: Wed Mar 09, 2011 6:37 pm

Re: New HMRC expenses exemption

Postby Jetsetter4805 » Mon Mar 12, 2018 2:54 pm

Thank you for the clarification. Based on your response it would appear that I don't need to apply for the exemption.

bd6759
Posts: 2839
Joined: Sat Feb 01, 2014 3:26 pm

Re: New HMRC expenses exemption

Postby bd6759 » Mon Mar 12, 2018 9:57 pm

The statutory reference is s289A-E ITEPA 2003.

This is brief summary: https://www.gov.uk/employer-reporting-expenses-benefits/dispensations


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