1. Overview

As an employer providing business or private expenses for your employees, you have certain tax, National Insurance and reporting obligations.

There are separate rules for individual benefits you provide to your employees. You need to follow specific reporting and payment rules for different items, including travel, meals and accommodation.

What’s included

The rules on cash sum payments for business expenses cover:

  • cash sums you provide to meet the costs of your employees’ expenses
  • expenses they’ve paid for themselves that you reimburse
  • scale rate payments’ you pay at a level agreed with HM Revenue and Customs (HMRC)
  • round sum allowances’, which you give to an employee regardless of how they spend them

Payments for private expenses count as earnings.