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

HMRC internal manual

Employment Income Manual

The general rule for employees’ expenses: introduction

Section 336 ITEPA 2003The general rule for employees’ expenses can be found in Section 336 ITEPA 2003. This rule can apply to any expense as long as a number of tests are met, see


If a deduction is not allowable under Section 336 check the table in EIM31611to see if it is allowable under other legislation. Of these other rules the ones that you will use most often are the rules for employee travel introduced at EIM31800.

The general rule for employees’ expenses is modified where some or all of the duties of an employment are performed outside the UK and some of the earnings are not taxable earnings or are taxable only on remittance, see EIM31750.

From 2002/03 the general rule for employee expenses does not apply to costs incurred by employees who use their own vehicle or bicycle for business travel. Instead a deduction is permitted under the statutory mileage allowance relief scheme,see EIM31200.