EIM20010 explains when the special rules apply for expense
payments and benefits.
The amount of the expense payment, or the cost of the benefit, is treated as general earnings (Section 7(5) ITEPA 2003) taxable as employment income ( EIM00511) under Section 6(1)(a) ITEPA 2003.
From the amount of earnings a deduction is made for:
If an Inspector is satisfied that no tax would be payable, for
example, because an equivalent expenses deduction would be due, a
dispensation can be given which exempts the expenses and benefits
from charge (
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