Collection

Expenses and benefits for directors and employees - a tax guide: 480

This guidance sets out HMRC's approach to applying legislation on expenses payments and benefits received by directors and employees.

This tax guide explains the tax law relating to expenses payments and benefits received by:

  • directors
  • employees

It also explains the tax law relating to the valuation of non-cash benefits received by any taxpayer:

  • in connection with termination of employment
  • from an employer-financed retirement benefits scheme

For information on these non-cash benefits, read chapter 27 before you look at any other section of the tax guide.

This tax guide is based on the law in force at 6 April 2017 and certain subsequent changes that come into force from 6 April 2018. It has no binding force and does not affect your rights of appeal.

Certain specific aspects of the law affecting securities or share schemes apply from dates later than 6 April 2007. See the website address in chapter 23.10 for more details.

This tax guide also describes the scope of the legislation and the effect of the changes resulting from the Finance Act 1976 and subsequent Finance Acts. Most of the relevant provisions are now in part 3 chapters 2 to 11 Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003).

Unless otherwise stated the statutory references in this tax guide are to ITEPA 2003.

References to the relevant legislation are shown at the top of each paragraph. If you’re in doubt, consult the wording of the statute on the legislation website.

Documents

  1. Legal background to expenses payments and benefits (480: Chapter 1)
  2. Exemption for paid or reimbursed expenses (480: Chapter 2)
  3. Tax treatment of expenses payments (480: Chapter 3)
  4. Taxable benefits and facilities (480: Chapter 4)
  5. Non-taxable payments and benefits (480: Chapter 5)
  6. Valuation of company benefits (480: Chapter 6)
  7. Deductions for work expenses (480: Chapter 7)
  8. Travelling and subsistence expenses (480: Chapter 8)
  9. Expenses for employees carrying out international work (480: Chapter 9)
  10. Work expenses for spouses accompanying employees on business trips (480: Chapter 10)
  11. Cars and vans available for private use – when a benefit charge is incurred (480: Chapter 11)
  12. How to work out the benefit of a company car (480: Chapter 12)
  13. Taxable fuel provided for company cars and vans (480: Chapter 13)
  14. Benefit charge on company vans available for private use (480: Chapter 14)
  15. Use of company pooled cars or vans (480: Chapter 15)
  16. How to tax mileage payments for employees (480: Chapter 16)
  17. Beneficial loan arrangements (480: Chapter 17)
  18. Scholarships (480: Chapter 18)
  19. Tax not deducted from remuneration paid to directors (480: Chapter 19)
  20. Taxation of entertainment expenses (480: Chapter 20)
  21. Company provided living accommodation (480: Chapter 21)
  22. Company mobile phones (480: Chapter 22)
  23. Employment related securities and arrangements (480: Chapter 23)
  24. End of year procedures to be followed by employer and employee (480: Chapter 24)
  25. Guidance on completion of forms P11D (480: Chapter 25)
  26. Remuneration in non-cash form (480: Chapter 26)
  27. Non-cash benefits (480: Chapter 27)

Appendicies

  1. Company car benefit examples (480: Appendix 1)
  2. Company car benefit – the appropriate percentage (480: Appendix 2)
  3. Mileage Allowance Payments (480: Appendix 3)
  4. Beneficial loan arrangements (480: Appendix 4)
  5. Qualifying loans (480: Appendix 5)
  6. Taxation of beneficial loan arrangements (480: Appendix 6)
  7. Relocation expenses (480: Appendix 7)
  8. Incidental overnight expenses (480: Appendix 8)
  9. Work-related training (480: Appendix 9)
  10. Self Assessment – expenses and benefits (480: Appendix 10)
  11. Employer Supported Childcare (480: Appendix 11)
  12. Optional remuneration arrangements (480: Appendix 12)
Published 30 December 2019