SolvedEIM21210 | The benefits code: deduction for necessary expenses
From HM Revenue & Customs · Employment Income Manual
The employee can claim a deduction from the cash equivalent for any amounts which would have been allowable as expenses, if he had paid for the benefit out of his earnings. The most important amounts which can be deducted are those which would have been allowable as:
necessary expenses under section 336 ITEPA 2003 (EIM31620 onwards)
travelling expenses under sections 337 and 338 ITEPA 2003 (EIM31810)
professional fees and annual subscriptions under sections 343 and 344 ITEPA 2003 (EIM32880)
the expenses of a minister of religion under section 351 ITEPA 2003 (EIM60040).
Benefits which are used for business entertaining will not usually qualify for a deduction under section 336 (EIM32630).