Hi,
Maybe a silly question as ive not yet taken the payroll exam but I do payroll as part of my role at work and was just doing some more research as im considering a job change to something that is purely payroll and penisions.
looking into the expenses allowances ive seen that the fuel allowences has an approved amount so you dont have to pay tax. Can anyone clarify this snippet from the HMRC website for me as it makes no sense. Maybe its just too late LOL.
Anything below the ‘approved amount’
You won’t have to report to HMRC or pay tax, but:
- your employee will be able to get tax relief (called Mileage Allowance Relief, or MAR) on the unused balance of the approved amount
- you can make separate optional reports to HMRC of any such unused balances under a scheme called the Mileage Allowance Relief Optional Reporting Scheme (MARORS) - contact your HMRC office to join the scheme
Is that saying that if i only received £100 expense costs i could get the remaining balance as tax releif? that seems odd to me. I must be mis-intererating this somewhere im sure.
Any clarification would be great.
Thanks
Lisa
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