You must keep a record of all expenses and benefits you provide to your employees, such as:
- the date and details of every expense or benefit you provide
- any information needed to work out the amounts you put on your end-of-year forms
- any payment your employee contributes to an expense or benefit
Records must be kept for three years from the end of the tax year they relate to.
You can keep them on paper, digitally, or as part of a software program (like Rydoo). Make sure that you are preserving the information contained in the original documents. HMRC can charge you a penalty if your records are not accurate, complete, and readable.
You reimburse an employee’s travel expenses – you’ll need to keep a record of when and why the employee travelled, and where possible keep receipts as evidence.