Non-reportable employee benefits and PAYE Settlement Agreements

We examine the items which are commonly exempt from reporting obligations for employee benefits, as well as covering PAYE Settlement Agreements and payrolling benefits under HMRC’s statutory regime.

The distinction between an exemption from tax and a deduction that can be claimed by the employee is an important one, particularly when considering the treatment of cash reimbursements to employees. Whilst some further explanation is outlined below, some common examples of items that may be treated as exempt for income tax, National Insurance (NI) and reporting purposes are listed in Common exemptions.