Skip to content

Benchmark rates and record keeping requirements

by bob.jones on June 1st, 2010

As at 24 Aug there have been further developments since this –  …

All new umbrellas and those where dispensations are being renewed will be required to adopt the benchmark rate unless they can show that a higher rate is applicable. Even though an employer may be operating the benchmark rate HMRC expect that an audit trail is present to prove that the employee has purchased a meal. The HMRC instuctions are a little vague – they talk about regular checks and adequate procedures. I have been trying to tie them down and the best I have managed so far is this:

“The Revenue’s position is that an employer should be able to demonstrate that the scale rate payments made to their employees does no more than reimburse these individuals for the actual costs they have incurred in performing the duties of their employment. They should retain sufficient records to demonstrate that they undertake regular checks to ensure that the travel rules are being followed. 

“The frequency of these checks will depend on the size of the workforce and the number of claims being made. At a minimum I would expect that such a check should be carried out at least once a year and involve employees submitting receipts with all claims for at least one month. It would depend on the findings of this check as to whether or not further checks are undertaken. It should ideally also be random and without warning.”

From → Uncategorized

Comments are closed.