- Mobile telephone – if the contract is in your personal name you can only claim business related call costs.
- The £8,500 trap – if an employee earns below this amount but receives benefits in kind taking them over the limit, A P9D has to be submitted.
- A director has to submit a P11D no matter what they earn and complete a self-assessment.
- Pensions – pension contributions are limited to a maximum of £50,000. This will reduce to £40,000 next year subject to an employee’s pay exceeding this amount.Watch out for the 3 year rule.
- Pension pots – the fund will be reduced by £250,000 to £1,250,000 from the 6th April 2014
- All expenses claims must be wholly and exclusively incurred in the performance of their duties, otherwise not allowable.
- Working lunches – are only allowable if all the company get fed.
- Watch out for the Christmas party – an employer is only allowed to claim £150 per annum for entertaining staff and their families.
- Tax free mileage allowances – most people know the limits and allowances. Don’t forget to keep records of journeys made.
- If your employer buys clothing for work it must display the company logo, even if it’s an Armani suit
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10 expenses that will trip up PAYE workers
Business Accountant 