Personal Tax Question

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NickyW
NickyW Registered Posts: 97 Regular contributor ⭐
Hi there - I wonder if anyone can help me. I am getting a little confused but am I right in thinking the following.....
1. if I have reimbursed business travel expenses these are an assessable benefit - but reimbursed business entertaining is not an assessable benefit.

2. Following on from point 1, if I drive to a business meeting and get 40p a mile from my employer this is not assessable but if I got the train to the same meeting and was reimbursed this would be assessable.

Finally, if I got £300 a month for entertaining clients and spent £100 - would just the £100 be taxable. Also if I just spent £100 and was reimbursed by my employer none of this would be assessable.

I hope I am making sense!
Any replies would be greatly appreciated!
Nicky

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  • sama
    sama Registered Posts: 40 Regular contributor ⭐
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    Hi, I might be just as much in the dark with this one as you, but I'll give it a shot and then let others correct me:

    1. Entertaining clients is an allowable deduction if it was reimbursed by the employer. In this case it must be listed both as a deduction and as a benefit. This is the same treatment as for business travel expenses, unless there is a dispensation in force from the HMRC.

    2. For your mileage (assumint it is in the first 10,000 miles for the year) this payment is both an benefit and an allowable deduction. They won't affect your tax as they cancel out. The train travel would be calculated the same way, added as both a benefit and a deduction and so cancel out.

    The one about £300 for entertaining, I'm not sure I understand the question. Would you receive £300 as a benefit and only actually spend £100?
  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
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    Personal tax isn't my strong point - when you say assessible do you mean P11D?
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