Income within the benefits code is treated as earnings taxable
as employment income (
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 (
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).