Section 289B — Income Tax (Earnings and Pensions) Act 2003: Approval to pay or reimburse expenses at a flat rate

Approval to pay or reimburse expenses at a flat rate 289B 1 A person (“ the applicant ”) may apply to Her Majesty's Revenue and Customs for approval to pay or reimburse expenses of the applicant's employees, or employees of another person, at a rate set out in the application (“the proposed rate”).

2 An officer of Revenue and Customs may give the approval if satisfied that any calculation of a payment or reimbursement of expenses in accordance with the proposed rate, or such other rate as is agreed between the applicant and the officer, would be a reasonable estimate of the amount of expenses actually incurred.

3 An approval under subsection (2) takes effect in accordance with a notice (an “approval notice”) given to the applicant by an officer of Revenue and Customs.

4 An approval notice must specify—

a the rate at which expenses may be paid or reimbursed, b the day from which the approval takes effect, that day not being earlier than the day on which the approval notice is given, c the day on which the approval ceases to have effect, that day not being later than the end of the period of 5 years beginning with the day on which the approval takes effect, and d the type of expenses to which the approval relates.

5 An approval notice may specify that the approval is subject to conditions specified or described in the notice.

6 An application for an approval under this section must be in such form and manner, and contain such information, as is specified by Her Majesty's Revenue and Customs.