Hi. a little background, my ltd co is a consultancy, with 5 employees (consultants). 4 are paid PAYE only. 1 (me) is paid PAYE + occasional dividends. I'm hoping to figure out if I can reimburse mileage to an employee at 40p per mile.
I've got a new employee working for me who has asked me about reimbursing him for his mileage to my client in Essex for six months. The trip is from his home address in Cambs to Essex and back, each day. My biz office (where I work from, when I'm not also on site with a client) is in Coventry.
So for the employee travelling from Cambs->Essex can that be argued as a biz trip mileage? I'm not sure what address to put as his office address either..
If I cannot reimburse mileage at 40p mile as an expense.. can I reimburse as a "benefit".. that way I guess it is not an expense in my book keeping.. the employee then doesn't get that benefit of receiving it tax free..(no NI+income tax).. but does get taxed a little on the benefit of it (not sure if this benefit works out cheaper than just giving him more pay on his payslip though?)
Any advice or suggestions appreciated. Thanks, Richy
I've got a new employee working for me who has asked me about reimbursing him for his mileage to my client in Essex for six months. The trip is from his home address in Cambs to Essex and back, each day. My biz office (where I work from, when I'm not also on site with a client) is in Coventry.
So for the employee travelling from Cambs->Essex can that be argued as a biz trip mileage? I'm not sure what address to put as his office address either..
If I cannot reimburse mileage at 40p mile as an expense.. can I reimburse as a "benefit".. that way I guess it is not an expense in my book keeping.. the employee then doesn't get that benefit of receiving it tax free..(no NI+income tax).. but does get taxed a little on the benefit of it (not sure if this benefit works out cheaper than just giving him more pay on his payslip though?)
Any advice or suggestions appreciated. Thanks, Richy
Comment