You should generally pay staff money following successful expense claims via payroll. This creates a record of your payments and ensures that you’re always being clear and transparent about your staff expenses payments.
You can also use payroll to pay taxes and NICs due on your expense payments. This is known as ‘payrolling’. To use this method, you’ll need to register to do so with HMRC before the start of the tax year.
For more information, read Employee expenses and benefits and the Government’s guidance on payrolling.