Date of publication: April 2017
From 6 April 2016 all dispensations cease to exist and have been replaced with statutory exemptions for specific payments. Almost all expenses or benefits that would have been covered by a dispensation will be within an exemption and will not need to be reported on a P11D.
Items that are commonly covered by the exemption are:
The exemption does not apply to expenses or benefits that are paid or provided under a salary sacrifice.
You do not need to apply for an exemption if you’re paying HMRC’s benchmark rates for allowable expenses. If you pay above HMRC’s benchmark rates please let us know. The following link sets out agreed rates of reimbursement and contains other useful information: https://www.gov.uk/expenses-and-benefits-a-to-z
Detached duty relief, where the expected period of secondment is less than 24 months, is covered by the statutory exemption as there is no liability to income taxes. As soon as this expectation changes to over 24 months the whole reimbursed expense amount becomes taxable.
Trivial benefits are statutory exemptions if the following conditions are satisfied:
Please let us know if there are any reimbursed home land line rentals and internet and we can discuss this further.
If you have any queries regarding statutory exemptions, please email me or P11D@ouryclark.com.
TAX 14 Disclaimer: This note does not contain a full statement of the law and it does not constitute legal advice. Please seek legal advice if you have any questions about the information set out above.
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