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General

Expenses paid or reimbursed to the employee by the employer are not taxable if they are covered by specific statutory exemption or, more generally, if the payment would be matched by an allowable deduction (see E4.1203C and E4.707B, including scale rate expenses payments where HMRC has specifically agreed tax free treatment, eg see E4.1320). Payments or benefits outside these rules are likely to attract PAYE or should be reported on forms P11D (see E4.11120), with corresponding NIC liabilities due. Some additional points to consider, include:

1. Ìý

   •ÌýÌýÌýÌý potential exemptions available, or tax/NIC liabilities, if providing healthcare and family benefits, see E4.1211

2. Ìý

   •ÌýÌýÌýÌý other general employee benefits and incentives enjoying tax-efficiencies, see E4.1213

3. Ìý

   •ÌýÌýÌýÌý pension provision as reward, see E4.1216

4. Ìý

   •ÌýÌýÌýÌý the tax exemptions available when an employment terminates, see E4.1218

5. Ìý

   •ÌýÌýÌýÌý some aspects which may be relevant when altering an employee's contract, see E4.1219

As regards expenses payments, onus is now placed squarely on the employer to