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EIM20607 | The benefits code: deductions for expenses payments received: example

From HM Revenue & Customs · Employment Income Manual

Section 70 ITEPA 2003

An employee (who for 2015/16 and earlier is not in an excluded employment (EIM20007)), is reimbursed the following expenditure.

ExpenditureAmount
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

ItemAmount
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