Allowances/expenses

leetennis · 10-10-2013, 10:49 AM

Hi all,
Wondering if someone can help me with a little tax conundrum I'm having.

An MD or any member of staff for that matter is entitled to Â£18pm allowance when working from home.

How does this get paid to the staff member?
1. Business pays them, business rights off Â£18 as a business expense.

2. Employee claims Â£18 tax relief from HMRC?

If 2. What if the employee is paid under the tax threshold hence no relief to claim?

All answer on the back of a postcard and mailed to,

WTF accounting
1 not a clue
Ne14 Astd

Thank you!

Hotcoupe · 10-10-2013, 11:22 AM

Quote:

Originally Posted by leetennis

Hi all,
Wondering if someone can help me with a little tax conundrum I'm having.

An MD or any member of staff for that matter is entitled to Â£18pm allowance when working from home.

How does this get paid to the staff member?
1. Business pays them, business rights off Â£18 as a business expense.

2. Employee claims Â£18 tax relief from HMRC?

If 2. What if the employee is paid under the tax threshold hence no relief to claim?

All answer on the back of a postcard and mailed to,

WTF accounting
1 not a clue
Ne14 Astd

Thank you!

I claim £18.00 per month on my expenses every month so it's not a taxable benefit to me.

I don't give a flying *uck about anything else

davyk31 · 10-10-2013, 11:36 AM

Business pays it and enters as a normal expense into its accounts. Employee sorts any HMRC issues themselves via self assessment.

leetennis · 10-10-2013, 02:22 PM

Cheers guys, that has helped heaps,
Lee

10-10-2013, 10:49 AM	#1
leetennis Lieutenant 37 Rep 517 Posts Drives: 3 M Sport Join Date: Jul 2009 Location: kent iTrader: (0)	Allowances/expenses Hi all, Wondering if someone can help me with a little tax conundrum I'm having. An MD or any member of staff for that matter is entitled to Â£18pm allowance when working from home. How does this get paid to the staff member? 1. Business pays them, business rights off Â£18 as a business expense. 2. Employee claims Â£18 tax relief from HMRC? If 2. What if the employee is paid under the tax threshold hence no relief to claim? All answer on the back of a postcard and mailed to, WTF accounting 1 not a clue Ne14 Astd Thank you!
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10-10-2013, 11:36 AM	#3
davyk31 Major General 1042 Rep 6,946 Posts Drives: Macan GTS :-) & F40 M135i Join Date: Sep 2009 Location: Northern Ireland iTrader: (0)	Business pays it and enters as a normal expense into its accounts. Employee sorts any HMRC issues themselves via self assessment.
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10-10-2013, 02:22 PM	#4
leetennis Lieutenant 37 Rep 517 Posts Drives: 3 M Sport Join Date: Jul 2009 Location: kent iTrader: (0)	Cheers guys, that has helped heaps, Lee
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