Employers have to keep records of all expenses and benefits provided to employees - such as travel and entertainment, company cars, health insurance and childcare - and must provide end-of-year forms to HMRC.
Employers providing business expenses for staff may need to pay tax and National Insurance on them. The definition of a business expense is, essentially, something required by an employee to do their job.
If you are self-employed or run your own limited company, you may be able to deduct some business costs from your pre-tax profits. Allowable expenses include:
Receipts must be kept and forwarded for all expenses incurred, making following the rules quite a burden for employers. There can be penalties if you do not maintain adequate records, so let's look at how best to store and submit expenses details.
The good news is that HMRC will now accept scanned copies and photos taken on a smartphone and some mobile apps. Creating digital records, therefore, becomes imperative - and with the right system can save you time and money.
Asking employees to collect and keep paper receipts and manually fill in financial spreadsheets with the details can be a fiddly and painstaking business. With the HMRC green light, making a move to electronic expenses reporting can be a forward-thinking business decision. This is where Soldo Business comes in.
Soldo Business is a multi-user spending account consisting of a prepaid business card, an admin dashboard and a mobile app. You can keep control over everyone's wallets via the richly featured dashboard and will be notified instantly every time someone spends money. You can set tailored limits, rules and budgets for each card, harmonising with your procurement policy. Virtual cards can be created for online shopping too.
Our system saves businesses time and money, freeing up staff up to concentrate on what matters.
Balances and statements can be downloaded from the app at a glance, and accounts can be topped up or locked at the click of a mouse. For ease of use, Soldo is compatible with all major accounting software.
With the Soldo Business app, employees can simply take a photo of their receipt on the spot (including the back), and it aligns immediately to the back-end platform. Tagging and extrapolating company spending data then becomes straightforward.
When no limits are in place, over-spending on expenses can rear its ugly head at the end of the month. With a Soldo card, all spending is tracked and accounted for in real time. Spending limits can be assigned so that no one can rack up exorbitant expenses, and data can be processed on a macro or micro level, per department or individual.
Having to dip into their own pockets on expenses may inconvenience lower-paid staff or contractors who have to wait to be reimbursed. With our prepaid card, they won't have to bear the financial brunt themselves.
Petty cash payments can be difficult to monitor: spending may run amok, they are not suitable for more substantial expenses, and the system is open to misuse. An employer can load a prepaid Soldo card in advance via the admin dashboard, for use as a standard debit or credit card. The finance team can then impose limits, control individual cards and extract spending information at their fingertips.
The Soldo dashboard features instant reporting and control over different types of transactions - whether online, overseas or ATM. With built-in manageability and multi-payment options, plus cost-effective modular fees, Soldo will keep track as your business evolves and grows.
For more information on our expense management systems, and to see how we can benefit your business, please visit us here.