Expenses and benefits for employers

Record keeping

You must keep a record of all expenses and benefits you provide to your employees.

Your records need to show that you’ve reported accurately and your end-of-year forms are correct.

HM Revenue and Customs (HMRC) may ask to see evidence of how you accounted for each expense or benefit at the end of the tax year.

What you should keep

You’ll need to keep a record of:

  • the date and details of every expense or benefit you provide
  • any information needed to work out the amounts you put on your end-of-year forms
  • any payment your employee contributes to an expense or benefit

You should also keep any correspondence you have with HMRC.

Records must be kept for 3 years from the end of the tax year they relate to.

Example

You reimburse an employee’s travel expenses - you’ll need to keep a record of when and why the employee travelled, and where possible keep receipts as evidence.