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Employment tax changes: mistakes with expenses could be expensive!

Manual (EIM 30270). The level of checking will vary depending upon the number of employees within the organisation. Employers will need to be able to demonstrate that someone other than the employee is responsible for ensuring that the amounts being reimbursed relate to a qualifying business expense. Employees should always be expected to submit fully detailed expenses claims, together with supporting receipts and explanations as to who they met and where the meeting was held. Furthermore, from a point of the employers own cost controls adopting a more detailed review process will help to ensure that where excessive claims are being submitted, the appropriate action is taken to ensure such excesses are not repeated. Can we expect more changes? The simple answer is yes! In addition to the introduction of the business payments exemption, voluntary payrolling of benefits in kind also came into effect from 6 April 2016. Given the Government’s need to balance the books during the lifetime of this Parliament we are likely to see a move across to the compulsory payrolling of benefits. We are awaiting further developments in respect of the use of PAYE Settlement Agreements, and of course, the introduction of the Apprenticeship Levy from April 2017 will add a real cost to all employers.

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AI Magazine May 2016  
AI Magazine May 2016