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Dear sir,
As you might be aware relocation expenses upto 8000pounds are fully exempt for the employee and fully tax deductible for the employer. But when the relocation expenses exceed 8000pounds limit then they become fully chargegable. Now here comes my doubt, they become fully chargegable for the employee or employer??
similarly entertainment expenses over 150pounds for staff becomes fully chargegable for the employee or empleyer??
1. Relocation expenses of an employee of £10,000 are NOT fully chargeable – only the excess above £8,000 is taxable on the employee.
2. A Christmas party costing £200 per employee would be fully taxable on the employee as it exceeds the £150 limitIn each case the cost to the employer would be an allowable expense in computing the taxable profit of the business
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