Hi Nicky,

Thanks for your post.

If you're reimbursing mileage through payroll, and it's tax free, then these reimbursements aren't a taxable benefit. For example, it costs the employee £50 to travel however many miles, and so they receive a post-tax payment of £50 to reimburse. If this is the case, then there is no benefit to the employee, they are just getting paid for their expenses.

You mention filing P11s, do you mean P11D? Based on the above I'm not sure P11D would apply?

The version of Sage 50 Payroll to be released next year will support payrolling of benefits and will allow you to specify what type of benefit(s) the employee receives and what the value of that benefit is. The system will then work out the value to be payrolled each pay period.


Andy,
Sage UKI