Expenses and benefits: credit, debit and charge cards
What to report and pay
If card charges aren’t exempt, you must report them to HM Revenue and Customs (HMRC) and may have to deduct and pay National Insurance on them.
This depends on how the credit or debit card is used, whether it’s clearly used on the employer’s behalf and what the employee purchases with it.
‘Used on the employer’s behalf’ means that the employee makes it clear to the supplier that they are making the purchase for your business, and the supplier accepts this.
The card is used on the employer’s behalf but without permission
You must:
- report it on form P11D
- deduct and pay Class 1 National Insurance (but not PAYE tax) through payroll
The card is used for business purchases but not clearly on behalf of the employer
You must report it on form P11D. You don’t have to deduct or pay any tax or National Insurance.
The card is used for private purchases but not clearly on behalf of the employer
You must:
- report it on form P11D
- deduct and pay Class 1 National Insurance (but not PAYE tax) through payroll
Salary sacrifice arrangements
If the charges are less than the amount of salary given up, report the salary amount instead.
These rules don’t apply to arrangements made before 6 April 2017 - check when the rules will change.