Changes to the treatment of expenses for unpaid office-holders
18 January 2019
The government will legislate in Finance Bill 2019-20 so that expenses paid or reimbursed to unpaid office-holders, are exempt from income tax when incurred because of their voluntary duties.
This places the existing concessionary treatment of paying or reimbursing reasonable expenses incurred because of their voluntary duties on to a statutory footing, providing certainty for those organisations engaging unpaid office-holders.
Corresponding legislation will be introduced to mirror the income tax exemption for National Insurance contributions.
The new rules will apply from 6 April 2020.
This information was highlighted in the December 2018 issue of HMRC’s Employer Bulletin.