You can reimburse employees for expenses they pay while doing their job, for example meals, vehicles or tools. These expenses are not taxable. If the payment you make is more than the expense you'll need to tax the excess.
You can use the employee's receipts to calculate the amount to reimburse. You can also make a reasonable estimate of the costs incurred by an employee and treat this as the amount paid by the employee.
Add the amount of the tax-free allowance to your employees' net salary or wages (after PAYE) when you pay them. Show the total tax-free allowance paid in your wage-book.
Do not show the tax-free amount on your employment information schedule.