Expenses and benefits in kind: a guide to tax and NICs: home page

Introduction

Most expenses paid to employees, and benefits provided to them because of their employment, are earnings for tax and National Insurance contributions (NICs) purposes. The rules for dealing with them are generally the same whether the actual employer or another person pays the expenses, or provides the benefit.

This one-stop guidance helps employers to deal with expenses and benefits.

How to use this guidance

There are three levels to this guidance:

Level 1 - how to operate the rules - tells you when you should consider the expenses and benefits rules.

Level 2 - quick guide to whether tax and NICs are due - using a pick-list you can find further information about the payment you are making.

Level 3 - more detailed information - about particular payments if you need it.

You will also find some links to our internal manuals - Employment Income (EIM) and National Insurance (NIM) - if you want more information.

Note: There are special rules dealing with expenses and benefits payments on the termination of an employment. If you want further information, see EIM12805 and NIM13132.

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