PAYE: employer expenses and benefits exemption
Use the employers exemption form if you are an employer and want to apply for a bespoke or industry scale rate for reporting non-taxable expenses and benefits.
As an employer, you can use this form to apply for approval from HMRC to pay a bespoke or industry scale rate to your employees to reimburse them for expenses that they have to pay.
You do not need to apply to HMRC if you wish to pay HMRC benchmark scale rates.
Approval notices cannot be back dated to the start of a tax year or any other time and only apply from the date they are issued by HMRC. Employers cannot start to use a bespoke or industry rate until they have received a copy of an approval notice.
Before you start
You should check your employees have:
- incurred relevant expenses
- retained evidence
Keep any paperwork relating to your claim until we have completed these checks.
If you are applying for a bespoke rate, make sure you have receipts to match the sampling exercise.
Complete this form online
You can use our interactive guidance to fill in the form. You’ll need to:
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Get all of your information together before you start. You will fill this form in online and you cannot save your progress.
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Print the form.
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Sign the declaration.
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Post to HMRC.
National Insurance Contributions and Employers Office
HM Revenue and Customs
BX9 1BX
United Kingdom
What happens next
We will check your form and issue an approval notice which will be valid for up to 5 years if you meet the criteria or contact you if we need more information.