- Annual health screenings and medical check-ups provided by an employer are fully allowed as a business expense, even if the benefit is selectively provided to certain employees only.
For the employee
- Annual free check ups are not a benefit in kind.
- The costs of providing a healthcare policy for staff and directors are fully allowed as a business expense
For the employee
- Medical Insurance is a benefit in kind reportable on a P11D
- If you use your personal car for business miles, you can claim business mileage
- You can claim 45p per mile for the first 10,000 miles and 25p thereafter.
- Remember to keep a mileage log showing all of your business miles. HMRC requires detailed records to evidence your business mileage claim.
2 year rule:
- If you travel to the same clients address, more than circa 60% of your time, then after 2 years HMRC deem this as commuting and is a disallowed expense.
Top Tips Use Tripcatcher for recording your mileage – Introduction to Tripcatcher
- The provision of a single mobile phone to an employee for personal use is not a taxable benefit, provided it is supplied under a contract in the employer’s name .
Where the Employee provides the phone:
- If the contract is in the name of the employee , and the employer meets the costs of the phone, any private use will be taxable.
- As the employer is settling a debt of the employee, the payments made should be put through the payroll, which means Class 1 NIC applies.
- When a phone is taxable, the benefit is calculated by adding together all the bills received in the tax year, and then deducting any costs for business calls. Basic contract costs are not business related for this purpose so these are a deemed a benefit in kind.