Vouchers, credit cards and excess mileage allowance

By Tolley
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The following Personal Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Vouchers, credit cards and excess mileage allowance
  • Vouchers
  • Mileage allowance payments
  • Passenger payments

The entry in box 12 on the Employment supplementary page  to the Tax Return is the total cash equivalent of:

 £Section of P11D
VouchersXC
Payments on credit cardsXC
Excess mileage paymentsXE
Excess passenger paymentsXE
 X 

These are benefits in kind provided and expenses paid by the employer. If they were provided ‘by reason of employment’ they are taxable. A benefit provided to a member of the employee’s family is also taxable on the employee (unless the family member is also an employee). The same applies to directors. See the Employment income guidance note.

These benefits and payments are taxable on all directors and employees (including lower-paid ministers of religion).

In September 2010, HMRC issued the Expenses and benefits from employment toolkit , which is a guide for employers and their advisers on the risks associated with the end of year forms P11D and should help avoid common reporting errors. The toolkit is updated annually.

Remember that, as with any other kind of employment reward, if the benefit is provided by a third party, rather than the employer, it worth considering whether the disguised remuneration provisions in ITEPA 2003, Part 7A apply, as those rules have priority

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