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PSA information gathering

The first step in calculating the benefit is to bring together the total costs to be included in the PSA. From a practical perspective, it can be quite challenging to find all the costs, particularly for larger organisations. It is important for the purposes of getting PSAs correct to ensure that there are robust systems for accounting for all employee expense claims and any benefits and expenses paid directly by the employer. Policies and processes around payments must carefully consider whether there is any potential PAYE issue for all payments/reimbursements. It is common, for example, for managers to provide prizes or rewards to their team and claim the costs as business costs without knowing that this creates liabilities for tax, NIC and reporting. Some sources for these costs include the following:

1. •

   General ledger codes for anywhere an employee’s expenses might be coded, including:

2. 1. ◦

      travelling and subsistence expense codes

   2. ◦

      entertainment and gifts expense codes

   3. ◦

      relocation costs codes

   4. ◦

      reward costs codes where any presents,