EIM32710 | Other expenses: flat rate expenses: when a flat rate deduction is due

Section 367 ITEPA 2003

Before you permit a flat rate deduction you should make sure that the employee, or group of employees, with whom you are concerned is necessarily obliged to incur deductible expenses on the upkeep of tools and/or special clothing (as defined in EIM32465). In many cases the employer will provide all that is required and in these cases no deduction should be permitted.

If the employer provides some tools, clothing or cleaning facilities, or contributes to the cost of such items, the nationally agreed flat rate expense deduction should be reduced to a corresponding extent. This is illustrated by example EIM32736.