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Posted Fri, 27 Aug 2021 11:20:34 GMT by JPC
Our company have arranged and paid for taxis home to a small number of people who work on our premise but are employed by another company we have a service contract with. Can we settle any liabilities due on this expense using our PSA that covers/includes this type of expense? And if so, how can we do that? Should we use the value of this expense against our employees (i.e. include it in the total value of this benefit provided to our employee) or should we perform a separate calculation against these people (i.e. use/hypothesise their marginal tax rate, etc.)
Posted Fri, 27 Aug 2021 15:46:23 GMT by HMRC Admin 2
Hi,

You can not use a PSA to report this, as those receiving the service you arrange and pay for are not your employees.

Whilst not an award as such, a third party is paying for a worker’s ordinary commuting which they would ordinarily need to pay for themselves.  

The third party paying for the taxi service should email: incentive.awards@hmrc.gov.uk as this will have to be reported and payment made through a Taxed Award Scheme (TAS).  

You can find more information here:

Expenses and benefits: third-party awards

Thank you.

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