When you are reimbursing employees for costs they have incurred in the performance of their duties, these are usually not treated as taxable (or subject to National Insurance contributions).

However, where that reimbursement is for a contract in the employee’s name which is of some mixed benefit, say a mobile phone contract or medical insurance, then these are subject to tax and National Insurance.

A number of our clients just provide us with a total balance for all expenses with no analysis, so we are unable to determine the status of the expenses. If you are happy that they are all non-taxable this is fine, and we will continue to treat them in this manner.

However, if you wish for us to review the types of expenses for you, please do let us know, or otherwise you should simply provide two values, taxable and non-taxable, for your employee expenses.