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HMRC internal manual

Employment Income Manual

HM Revenue & Customs
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The benefits code: deductions for expenses payments received: example

Section 70 ITEPA 2003

An employee (who for 2015/16 and earlier is not in an excluded employment (EIM20007)), is reimbursed the following expenditure.

Business travelling £500
Home to work travelling £300
Allowable professional subscriptions £50
Total £850

The payment of home to work travelling costs is not allowable as they are not incurred in the performance of the duties or in travel to a temporary workplace. The employee’s tax liability will therefore include

Reimbursed home to work expenses taxable as earnings (EIM10020 and EIM20602) £300
Reimbursed business travel and professional subscriptions £550
Deductible expenses (£550)
Taxable expenses £300