Bank charges

Our team of experts explain how to deal with reporting to HMRC any bank charges you pay for an employee

Our experts at DSR Tax Claims know how hard it is to find good, quality information about HMRC’s tax regulations that is easy to understand, and that’s why we have created these handy guides to tell you everything you need to know. Our aim is to make life easier for our clients and that is why we want to share our expertise with you. You can also call our friendly team on 0330 122 9972 – we’re the tax experts you can trust.

How do you treat bank charges?

If you are an employer and you are reimbursing bank charges incurred by your employees, you will need to treat these as earnings and report them to HMRC. To do this, you will add any bank charge payments you make to the employees’ other earnings and deduct Class 1 National Insurance and PAYE tax through payroll, just as you would any other earnings.

Are there any exemptions?

If you have paid or reimbursed bank charges because they are in some way your fault, for example late payment of salary has caused your employee to incur these charges, then these don’t count as earnings because you are just righting a wrong that your employee shouldn’t have incurred. In this instance you don’t need to report this to HMRC and there will be no tax or National Insurance payable.

How can DSR Tax Claims help?

We aim to make life as simple as possible for our clients and that includes giving you the information you need to make your taxes (and your life) simpler and less stressful.  Our team of experts at DSR Tax Claims are always on hand to help our clients and our excellent standing with HMRC means that we can make sure you don’t fall foul of their regulations, while claiming your maximum tax relief. We can even take care of all that paperwork and deal with HMRC on your behalf too. Call our friendly team on 0330 122 9972 – we’re the tax experts you can trust.

This page was last updated on 06/11/2018.

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