Round up – Car allowances, termination awards and working from home allowance

Car Allowance payments

Following a tribunal case in September 2023 and the subsequent ruling, there may be the opportunity to save National Insurance when a car allowance is offered instead of a company car.

See our article for more information on this – https://www.cliveowen.com/2023/09/car-allowance-payments-opportunity-to-save-national-insurance

Termination Awards

Please remember that termination awards are now potentially subject to Employer National Insurance and reportable via the payroll. Please contact us in advance of committing to any termination payments so we can confirm the appropriate treatment.

Working from Home Allowance

There are no changes to this, as last year any employee who is eligible to work from home should make a claim for tax relief under Self-Assessment (if applicable) online or by completing a form P87.

If payments are made via the payroll then any payments should be taxed accordingly.