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Employee expenses: Are P11D returns finally no more?

Shared from Tax Insider: Employee expenses: Are P11D returns finally no more?
By Jennifer Adams, April 2024

Jennifer Adams reviews the current use of form P11D and asks - is the form finally no more? 

The strict application of the rule for allowable expenses would require all expense payments to employees to be treated as employment income, leaving the employee to claim relief for the allowable part separately. In addition, an employer is required to notify HMRC of all expenses paid to an employee, even if the employee incurs the expense on the employer’s behalf.  

However, invariably, those expenses will not be taxable on the employee, as being incurred ‘in the performance of the duties’ of the employment and ‘wholly, exclusively and necessarily incurred’.   

Dispensations and payrolling 

Pre-2016, if it was clear that a particular type of expense would not give rise to any tax liability on the employee (being allowable for tax

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