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If you're an employer you may pay reimbursing allowances to employees to compensate for employment-related expenses.
These payments can include allowances for:
Reimbursement allowances aren't taxable so you'll need to tax the excess if the payment is more than the employment-related expenses.
You can make a reasonable estimate of the costs incurred by an employee and treat this as the amount paid by the employee. Otherwise you can use actual receipts.
Add the amount of the tax-free allowance to your employees' net salary or wages, ie, after PAYE, when you pay them. Show the total tax-free allowance paid in your wagebook.
Don't show the tax-free amount on your: