EIM20604 – The benefits code: expenses payments by an employer to a third party in respect of an employee

Interaction between Part 3 Chapters 3 and 10 and Section 62 ITEPA 2003

A payment made by an employer direct to a third party in respect of expenses is not within Section 70(1) ITEPA 2003 because the expenses are not paid to the employee within the benefits code.

In these circumstances, the employer is providing the employee with a benefit or facility chargeable under Part 3 Chapter 10 ITEPA 2003. But if the employer is discharging the employee's own debt the charge will be under Section 62 ITEPA 2003 ( EIM00580 onwards).