HMRC has updated its guidance to clarify the tax position of reimbursed travel costs for hybrid workers.

Petrol and diesel pump prices are high but the tax-free mileage rates payable to employees who use their own vehicles for business have not been adjusted for over a decade.

When completing the annual expenses and benefits return (P11D) you need to know what company-provided vehicles each employee and director used in the tax year.

It is time to report the expenses and benefits provided to employees during the year to 5 April 2022. This reporting process is known as the P11D after the number of the relevant HMRC form although these days the report is normally a function within payroll software.

Employee expenses and benefits provided in the year to 5 April 2021 must be reported to HMRC by way of the P11D process by 6 July 2021

Before the Covid-19 pandemic, many of us would travel to Europe to meet customers or attend trade shows. VAT on business expenses incurred in another EU country up to 31 December 2020 can be reclaimed through HMRC's online VAT service.