Submissions by Proxy allow users to delegate another user to add an expense on their behalf. This means that when the delegated user logs onto their own account they have the option to login as the other claimant and submit their expenses for them. This compliments the quick entry forms, which are printable and employees can fill them in and either fax or email them to an assigned administrator; this feature is essential for those employees without Internet access.

With many Hotels providing a split bill, it stands to reason that your expenses form should reflect this. Now you can add the room total, and break down additional charges such as breakfast, evening meal and miscellaneous items separately without having to add them separately. This ensures that the hotel bill doesn't contain items that may push the accommodation set limit, and allows you to report on all the individual items incurred with a hotel expense.

We are pleased to announce the introduction of 'Pivot Table' reporting within expenses. This feature captures the usual data, with the advantage of providing a visual representation of spending trends,  which then allows you to investigate certain categories further.

As requested by one of our customers, the feature that remembers the previous information entered within the general details section on the 'add an expense' page can now be quickly cleared with the simple click of the ‘clear general details ' button situated in the ‘page options' section to the left on the screen. This saves expenses being entered with the incorrect supporting details needed to explain why the expense occurred.

Another new feature includes handling both 'Cash and Credit Card' claims simultaneously whilst allowing you to submit them separately. There is a ‘view filter' situated beneath the ‘page options' section to the left on the screen which toggles between cash, credit cards or both; when the claimant is ready to submit their claim expenses will ask if it is cash, credit cards or both.

Other new features include: setting 'destination field' to be either searchable or in a drop down list; having the department/cost code reflect the companies own specifications; setting a % tip rate that employees can not exceed and the partial refresh page implementation speeds up the process for dial up users.

If you have any questions regarding how your organisation would benefit from expense automation, do not hesitate to call the the expenses team on 01522 881300 or email expenses-info@software-europe.co.uk

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Tax and NIC Implications on Fuel and Mileage

All benefits from employment are taxable.  If they are not actual cash amounts it becomes necessary to put a value (£) on them.

As a general rule, unless the benefit can be converted into cash there is no taxable benefit.  Where it is convertible into cash, the taxable amount is the resale value.

Reporting Employee Benefits:
Employers are required to notify the Inland Revenue of benefits provided to directors and most employees by completing P11d forms at the end of each financial year. Penalties can apply where the forms are submitted late or are incorrect.

The full amount of any benefit or reimbursed expense must be reported on this form.  However, where the reimbursed amounts represent genuine business expenses a claim can be submitted by the taxpayer on his or her tax return, (or in writing to the Revenue if they do not receive a tax return) thus resulting in no liability.

The following benefits are taxable on all employees:

• any living accommodation provided, unless job related
• vouchers
• credit tokens.

In addition, special rules apply to tax other benefits received by directors and all but the lowest paid employees. Common types of benefits provided to employees are company cars and private fuel:

• Company cars - this is probably the most common benefit and the taxable amount will generally be based on a range of 15% - 35% of the manufacturer's list price (including accessories) of the car. The taxable benefit depends upon the carbon dioxide emissions of the car. NOTE: The car value is the full value plus VAT. The full value is taken from the list value in Glass's Guide, not the price paid.
  
  There are reductions for unavailability of the car and where the employee makes a contribution towards the cost of the car.
  
• Private fuel - a separate charge applies where private fuel is provided for a company car, unless the employee reimburses the employer for all private mileage (including travel between home and work). The charges are determined by reference to the percentage applying to the company car. A set figure (currently £14,400) is multiplied by this percentage to determine the taxable benefit.

Employers providing such benefits in kind have a further NIC liability under Class 1A. Contributions are payable on the amount charged to income tax as a taxable benefit. Most benefits are subject to employer's NI. The current rate of Class 1A is the same as the employer's secondary contribution rate – 12.8%.

Private Fuel:
There is a tax charge where a company car user is supplied with or allowed to claim reimbursement for fuel for private journeys.

The fuel scale charge is based on the same percentage used to calculate the car benefit. This is applied to a set figure which for 2005/06 is £14,400. As with the car benefit, the fuel benefit chargeable to tax on the employee is used to compute the employer's liability to Class 1A. The combined effect of the charges makes the provision of free fuel a tax inefficient means of remuneration unless there is high private mileage.

The benefit is proportionately reduced if private petrol is not provided for part of the year. So taking action now to stop providing free fuel will have an immediate impact on the fuel benefit chargeable to tax and NIC. NOTE: If free fuel is provided later in the same tax year there will be a full year's charge.

Employees' Use of Own Car:
There is also a statutory system of tax and NIC free mileage rates for business journeys in employees' own vehicles. The statutory rates for 2005/06 are:

Employers can pay up to the statutory amount without generating a tax or NIC charge to the employee. Payments made by employers are referred to as ‘mileage allowance payments'.

Where employers pay less than the statutory rate (or make no payment at all) employees can claim tax relief on the difference between any payment received and the statutory rate.

To find out more information about how expenses can help you to report on these type of benefits in kind on the P11d, please call our expenses team on 01522 881300. Alternatively you can request that a member of our team contacts you by clicking here

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