I have just taken on a new client and I've noticed that the employees are paid 55p a mile which is obviously 10p more than the approved mileage allowance. The payment goes through the payroll - split between 45p not taxable and 10p taxable. So far so good....however, when I asked the previous bookkeeper about P11D's I was told that none were necessary. I was under the impression that if mileage was paid over the approved allowance then this was a benefit in kind and should be declared on a P11D. Can anyone confirm if this is the case?
Secondly, I have a client who has a company credit card which is used solely to buy purchases for work. The card is in the company name and the payment is made monthly from the company bank account. Do I need a dispensation for this? I've always thought not but a recent webinar has made me doubt this assumption.
A benefit in kind is something that the employee receives that hasn't been taxed on. If the employer is paying the extra 10p a mile but the employee has been taxed on it, I can't see how it can be a benefit in kind.
Re, the second question. I would definitely say no, but what has prompted you to doubt it?
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Hi - I am doubting that a dispensation isn't required after listening to a recent webinar on PAYE expenses and benefits. I will get further advice and post what I find out on the forum.
