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HMRC internal manual

Employment Income Manual

HM Revenue & Customs
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Tax treatment of teachers, lecturers and tutors: Committee of Vice Chancellors and Principals guidance: university lecturers: fees and expenses: general

Fees and expenses

This part of the guidance outlines how fees and travelling and subsistence expenses paid by universities, colleges, language schools, etc. to lecturers who are employees are treated for tax purposes.

“8. General

[Note: see EIM70700 changes in the law since this was published.]

Under general income tax law employees who are earning at the rate of £8,500 a year or more for 2015/16 and earlier are liable to tax on the full amount of their remuneration. This includes all fees, wages, salaries and expenses payments etc. They may have a deduction from their earnings for any travelling and subsistence costs ‘necessarily’ incurred in travelling in the performance of their work. They can also claim a deduction for any other expenses “wholly, exclusively and necessarily” incurred in the actual performance of their work.

For 2015/16 and earlier, employees earning below the £8,500 a year limit, a reimbursement of actual expenses incurred is not treated as remuneration provided the expense to which it relates is deductible by the employee.”