Expenses and Benefits

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Revised and up to date for 2025/26. This course provides an overview of the tax rules relating to expenses and benefits. It also help you identify when employers can make tax- and NIC-free payments to employees and the obligations involved.

£100 +VAT

4 CPD hours

120 days’ access

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Use ACPD101 for 10% off any purchase.

Expenses and Benefits

£100 +VAT

4 CPD Course 120 days’ access
Use ACPD101 for 10% off any purchase.

Expenses and Benefits

This course is not currently available. To find out more, please get in touch.

This course will enable you to

  • Understand the tax rules relating to expenses payments and benefits-in-kind
  • Know how to calculate the tax charge
  • Recognise certain expenses and benefits which can be received tax-free
  • Understand employers’ reporting and compliance obligations

About the course

The rules for calculating, reporting and paying tax on expenses and benefits are complex and there are severe penalties for failing to adhere to them. So it’s important for anyone who works in payroll or finance to understand the ins and outs of the benefits code.

Employers who provide expenses or benefits to employees or directors may need to notify HMRC and pay tax and NICs. The same goes for employees who receive them. This course provides a useful overview of this area of tax, before moving on to look at specific rules for common expenses and benefits, and employers’ reporting and payment obligations.

Please Note: This course only covers the United Kingdom

Contents

The expenses and benefits regime

An overview of expenses and benefits
Expenses
Benefits in kind
Following the regulations
The benefits code
Form P11D
Taxable charges
PAYE codes

Expenses

Taxable expenses
Tax relief rules
Travel expenses
The different types of travel
Approved mileage allowance payments
Foreign travel expenses
Non-travel expense exemptions

Benefits

Taxable benefits
Benefits in kind
Company cars and fuel
Bands and rates
Employer-provided vans
Trivial benefits
Tax-free benefits
Providing childcare
Tax-Free Childcare scheme

Employer obligations

Recording and reporting
Reporting obligations
Payrolling
Mandatory payrolling
PAYE Settlement Agreement
PSA deadlines
National Insurance Contributions
Penalties

How it works

Author

Sarah Laing

Sarah Laing

Sarah is a Chartered Tax Accountant (CTA) and a member of the Chartered Institute of Taxation (CIOT). Sarah currently works as a freelance tax author providing technical writing services to the tax and accountancy professions.