Changes to the treatment of expenses for unpaid office-holders 21 January 2019
The government will legislate in Finance Bill 2019-20 so that expenses paid or reimbursed to unpaid office-holders, are exempt from income tax when incurred because of their voluntary duties.
This places the existing concessionary treatment of paying or reimbursing reasonable expenses incurred because of their voluntary duties on to a statutory footing, providing certainty for those organisations engaging unpaid office- holders.
Corresponding legislation will be introduced to mirror the income tax exemption for National Insurance contributions.
The new rules will apply from 6 April 2020.
This information was highlighted in the December 2018 issue of HMRC’s Employer Bulletin.
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480 (2019) Expenses and benefits 25 February 2019
The 480 expenses and benefits tax guide has been updated to reflect changes for the 2019-20 tax year.
The 480 tax guide explains the tax law relating to expenses payments and benefits received by directors and employees. It also explains the tax law relating to the valuation of non-cash benefits received by any taxpayer: on or after 6 April 1998 in connection with termination of employment and from an employer-financed retirement benefits scheme.
New content and revisions in the 480 are marked with a green line in the margin.
480: Expenses and benefits – a tax guide
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Scale rate expenses payments for employee travelling outside the UK 26 February 2019
HMRC has made available the worldwide subsistence rates to apply from April 2019.
Worldwide subsistence rates: effective from 6 April 2019
Worldwide subsistence rates: effective 1 October 2014 to 5 April 2019
Employers can reimburse subsistence to employees by making a scale rate payment. If you have employees who travel abroad for business purposes, you should see the guidance on when you can use the worldwide subsistence rates.
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The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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