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Expenses compliance with Inland Revenue

Eye tests

The costs of eye tests and reimbursement of glasses/lenses are allowable if required

for VDU work. A dispensation may be claimed.

Taxis

The costs of taxis for general business use are allowable and a dispensation may be

claimed. However the cost of late working taxis from office to home are covered by

an extra statutory concession (A66) if used occasionally, this is limited to 60

occasions per month and should not follow a regular Patten i.e. every Friday. A

dispensation for this concession is not required.

Relocation

Employer may provide tax-free relocation expenses up to 8,500

Training

A dispensation may be claimed if able to demonstrate that all training is booked

centrally by the firm and are not claimed though expenses

Parking/tolls

A dispensation may be claimed

Air Travel/Rail Travel

A dispensation may be claimed

Entertaining

A dispensation may be claimed as long as we can demonstrate we maintain accurate

records with regard to business and staff entertaining.

Staying with friends allowance

A dispensation may be allowed for around 25 per night

Per diem rate

If we wish to pay a per diem rate, we could get a dispensation for 21.00 UK 30.00

outside UK. We could of course have no per diem and reimburse based on receipts,

however you are unable to have both. If we went for the per diem option we may be

allowed a day time allowance based on employees who do not incur an overnight

stay, If over 5 hours on business 5, if over 10 hours 10 to cover meals etc

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Telephones

We may claim a dispensation; need to be careful of private/business usage on lines

owned by both employee and employer.

Professional Subscriptions

May claim a dispensation if reimbursing cost of membership of an approved

professional body (see list 3a section 201 inland revenue) for list off approved bodies.

Need to be careful of all other subscriptions, where possible firm should be billed.

Working late food

May be able to claim a working late allowance 15euros? If working after 8pm,

although again most be occasional.

Mileage

See Inland Revenue limits, may reimburse less, but if you reimburse more than tax

will be liable on excess.

Inland Revenue Requirements

1. Copy of expenses policy

2. Demonstrate you are keeping records of mileage

3. Who checks and authorises claims

Andy Pugh

Cardiff Compliance

ECIT

Section 15 South

TY_Glas

Llanishen

Cardiff

CF4 5FP

Tel 02920326939

Check latest press releases for changes in mileage rates from April and Inland

Revenue website for guidelines