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HMRC internal manual

Employment Income Manual

The benefits code: beneficial loans: advances of expenses: consequences

Section 179 ITEPA 2003

Section 179 ITEPA 2003 (see EIM26155) only covers the charge on beneficial loans.

Tax may still be chargeable on the expenses themselves under:

  • Section 62 ITEPA 2003 as earnings from the employment (see EIM01110, EIM05100 and EIM05200), or
  • Sections 70 to 72 ITEPA 2003 as expenses of employees, except for 2015/16 and earlier those in excluded employment (see EIM20601 onwards).

Moreover Section 179 does not affect the charge that would arise if the debt created by the advance was released or written off (see EIM21740 onwards).

Although an employer does not have to report details of the advances on forms P11D as beneficial loans, they have to be included as expenses payments unless they are covered by a dispensation (see EIM30051 onwards).