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In Part 1 we will look at benefits to see if any can be provided to employee’s tax free by using HMRC tax free rates and HMRC concessions. It will also cover the management of business expenses incurred and reimbursed to employees. Employers and their accountants need to understand HMRC’s term “qualifying” business expenses. If the expenses do not meet HMRC’s “qualifying” criteria then the expense must be treated as a benefit or in some cases processed through the payroll resulting in additional costs to the employer.  

In Part 1 Alexandra Durrant will cover the following topics:

• What is a qualifying business expense
• When does an expense need to go through payroll
• Useful HMRC tax free expenses payments – mileage rates, incidental overnight expenses
• HMRC concessions for certain benefits – i.e. not taxable
• Trivial benefits – tax free??
• PAYE Settlement Agreement – PSA

In Part 2 we will look at P11D reporting for 2024/25 and 2025/26 – what to report, for whom and when.  It will review the form P11D and look forward to the proposed introduction of mandatory payrolling of benefits from 6 April 2025. Reporting on P11Ds must now be done online - fines and penalties arise when filing is late

In Part 2 Alexandra will cover the following topics:            

• Why benefits need to be reported and for which employees and how
• Deadline for notifying HMRC
• Class 1A employer national insurance liability
• Form P11D and review of each section
• Update on double cab pick-ups
• Increase in company car benefits in the future 

The benefits for accountants and bookkeepers of attending these two sessions are:

They will have a better appreciation of the importance of reviewing expenses when preparing VAT returns or carrying out bookkeeping for clients to ensure no payroll items are missed or benefits created inadvertently

To be able to explain to clients how to use HMRC concessions and tax-free amounts, how to calculate the value of a benefit in kind for P11D and explain the proposed mandatory payrolling of benefits from 6 April 2026 and how it will affect the client.

Course level: Intermediate / Advanced