Your employer is required to report expenses payments to HMRC on form P11D each year. To avoid paying tax on these payments you have to claim a deduction on your Tax Return – your employer should provide you with a copy of your 2007/08 P11D no later than the 6 July 2008. This laborious process of reporting and claiming may be avoided if your employer has been granted a dispensation. Expense payments covered by the dispensation do not have to be reported to HMRC and do not have to be included, with a counter-claim, on your own Tax Return. Payments covered by dispensations will be subject to review from time to time, including during an inspection visit from HMRC. You may be able to claim tax relief for other expenses you incur in connection with your job, but the rules are fairly restrictive.
Content by: Made Simple Group
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