Income within the benefits code is treated as earnings taxable
as employment income (
EIM00510).
Section 63(1) ITEPA 2003 lists the types of income included
in the benefits code in Part 3 Chapters 3 to 10 ITEPA 2003:
| Chapter 3 | Expense payments ( EIM20600) |
| Chapter 4 | Vouchers and credit cards ( EIM16000) |
| Chapter 5 | Provision of living accommodation ( EIM11300) |
| Chapter 6 | Cars, vans and related benefits ( EIM22050) |
| Chapter 7 | Loans ( EIM26100) |
| Chapter 8 | Notional Loans in respect of shares (Share Schemes Manual (SSM)) |
| Chapter 9 | Disposal of shares for more than market value (SSM) |
| Chapter 10 | Residual liability to charge for benefits generally ( EIM20010) |
Chapter 3 relates to expense payments (
EIM20600).
There are different rules for the specific benefits falling
within each of Chapters 4 to 9. Please consult the relevant
guidance for information on those rules.
Chapter 10 covers the general rules for those benefits that
do not fall into any of Chapters 4 to 9. For the purpose of Chapter
10, benefits in Chapters 4 to 9 are “excluded benefits”
(Section 202(1) ITEPA 2003).
The guidance that follows concerns expense payments to, and
general benefits provided for, directors and employees under
Chapters 3 and 10. Note that some Chapters of the benefits code do
not apply if the employment is an “excluded employment”
(
EIM20007).
