Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Employment Income Manual

From
HM Revenue & Customs
Updated
, see all updates

Deductions from general earnings: the benefits code: example of deduction from expenses payments

Section 72(2) ITEPA 2003

An employee has to travel on business from Birmingham to London. Her employer estimatesthat this will cost £120 and pays her that amount on a no-return basis. She is able tobuy a return rail ticket costing £70.

The expense payment by her employer is treated as earnings and charged on her by theoperation of Section 70 ITEPA 2003. From that amount she can deduct the same amount thatshe could have deducted if she had met the travel expense herself. She can deduct £70 andso is charged on a net amount of £50.