Part 4

Employment income: exemptions
CHAPTER 7A

Exemptions: amounts which would otherwise be deductible

Approval to pay or reimburse expenses at a flat rate
289B
1
A person (“
the applicant
”) may apply to Her Majesty's Revenue and Customs for approval to pay or reimburse expenses of the applicant's employees, or employees of another person, at a rate set out in the application (“the proposed rate”).
2
An officer of Revenue and Customs may give the approval if satisfied that any calculation of a payment or reimbursement of expenses in accordance with the proposed rate, or such other rate as is agreed between the applicant and the officer, would be a reasonable estimate of the amount of expenses actually incurred.
3
An approval under subsection (2) takes effect in accordance with a notice (an “approval notice”) given to the applicant by an officer of Revenue and Customs.
4
An approval notice must specify—
a
the rate at which expenses may be paid or reimbursed,
b
the day from which the approval takes effect, that day not being earlier than the day on which the approval notice is given,
c
the day on which the approval ceases to have effect, that day not being later than the end of the period of 5 years beginning with the day on which the approval takes effect, and
d
the type of expenses to which the approval relates.
5
An approval notice may specify that the approval is subject to conditions specified or described in the notice.
6
An application for an approval under this section must be in such form and manner, and contain such information, as is specified by Her Majesty's Revenue and Customs.
Pt. 4 Ch. 7A inserted (with effect in accordance with s. 11(2) of the amending Act) by Finance Act 2015 (c. 11), s. 11(1)
Pt. 4 modified (10.6.2021) by Finance Act 2021 (c. 26), s. 26(3)