I would just like to ask a question regarding processing/login an employees homeworking allowance (heating/elec.)
I've got 2 clients that work from home about 50% of the time doing their paper work. They have been trading for 3 years and have not claimed anything to date. Could I backdate their expense claim to the business and claim the standard rate £18 per month allowance and get paid the moneys through the company's expense procedure direct into their personal bank accounts. Looking for next years tax return to get a dispensation as a lot of company expenses being claimed. Would they need to declare this business allowance on their personal tax return still even if a dispensation has been raised?
I hope I'm making sense, I just need a bit reassurance that I'm understanding the process.
Yes you can back date the allowance and get it claimed against expense procedure, or they could write to HMRC and claim the tax relief instead - but I would not use this option given the choice.
HMRC have announced that the expenses and benefits procedures are changing from April 2016 and they shall be cancelling all existing dispensations. I would suggest you take a look at the Employer Bulletin (August 2015 issue 55) which gives full details.
