Non-Taxable Expenses Reimbursement

Non-Taxable Expenses Reimbursement

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Hi

Some of our clients like to reimburse non-taxable expenses to their employees together with monthly wages. It is therefore convenient to include those expenses on payslips. We use Payroll Manager and those expenses go into "Additions" section (Taxable/NIC-able unticked), the only problem is, they are included on RTI returns in the total net pay. Do you think this could potentially be an issue?

If yes, would would you suggestions be? 

Thank you

Replies (3)

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By petersaxton
29th May 2015 11:37

Net pay

I don't think HMRC would be interested in net pay.

Ask HMRC.

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RLI
By lionofludesch
29th May 2015 11:45

Unconvinced

I'm not convinced that they do get included in RTI.  Not all payroll stuff does.

But, if it bothers you, don't do it.  Pay expenses separately.  Simpuls, as the meerkat says.

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Euan's picture
By Euan MacLennan
29th May 2015 11:51

Not a problem

The total net pay is not reported as such on a FPS.  The employee's pay is analysed into its components, one of which is 'Non Tax or NIC Payment'.

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