EIM20607 - 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.

Expenditure	Amount
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

Item	Amount
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