The benefits code: more on working out if an employment has earnings of less than £8,500 a year: authorised deductions
Section 218(4) ITEPA 2003
This section only applies for 2015/16 and earlier.
EIM20101 explains how to calculate whether or not an employment has earnings of less than £8,500 a year.
Step 3 provides for the subtraction in the calculation of “authorised deductions” (Section 218(4) ITEPA 2003). The deductions concerned are (references to ITEPA 2003, unless otherwise stated):
- capital allowances treated as deductions (Section 262 CAA 2001), EIM36890
- employee liabilities and indemnity insurance (Section 346), EIM30500
- expenses of entertainers (Section 352), EIM62800
- payments by non-domiciled employees (Section 355)
- fixed sum deductions from earnings out of the public purse (Section 368), EIM60720
- various deductions for foreign travel expenses (Sections 370 to 376), EIM34000
- personal security assets and services (Section 377), EIM21810
- contributions to exempt approved superannuation schemes or exempt statutory schemes (Sections 592(7) and 594 ICTA 1988) and
- payroll giving to charities (Section 713).
Deductions not included in the calculation
For the purpose of the calculation in Section 218 no deduction can be given for:
- necessary expenses (Sections 336), EIM31600
- expenses of travelling in the performance of the duties or to a temporary workplace (Sections 337 and 338), EIM31810
- professional membership fees (Section 343), EIM32880
- annual subscriptions (Section 344), EIM32880 and
- clergymens’ expenses (Section 351), EIM60040.