Income Tax (Earnings and Pensions) Act 2003

[F1289BApproval to pay or reimburse expenses at a flat rateU.K.

This section has no associated Explanatory Notes

(1)A person (“the applicant”) may apply to Her Majesty's Revenue and Customs for approval to pay or reimburse expenses of the applicant's employees, or employees of another person, at a rate set out in the application (“the proposed rate”).

(2)An officer of Revenue and Customs may give the approval if satisfied that any calculation of a payment or reimbursement of expenses in accordance with the proposed rate, or such other rate as is agreed between the applicant and the officer, would be a reasonable estimate of the amount of expenses actually incurred.

(3)An approval under subsection (2) takes effect in accordance with a notice (an “approval notice”) given to the applicant by an officer of Revenue and Customs.

(4)An approval notice must specify—

(a)the rate at which expenses may be paid or reimbursed,

(b)the day from which the approval takes effect, that day not being earlier than the day on which the approval notice is given,

(c)the day on which the approval ceases to have effect, that day not being later than the end of the period of 5 years beginning with the day on which the approval takes effect, and

(d)the type of expenses to which the approval relates.

(5)An approval notice may specify that the approval is subject to conditions specified or described in the notice.

(6)An application for an approval under this section must be in such form and manner, and contain such information, as is specified by Her Majesty's Revenue and Customs.]

Textual Amendments

F1Pt. 4 Ch. 7A inserted (with effect in accordance with s. 11(2) of the amending Act) by Finance Act 2015 (c. 11), s. 11(1)