EIM21210 – The benefits code: deduction
for necessary expenses
Section 365(1) ITEPA 2003
The employee can claim a deduction from the cash equivalent for
any amounts which would have been allowable as expenses, if he had
paid for the benefit out of his earnings. The most important
amounts which can be deducted are those which would have been
allowable as:
- necessary expenses under Section 336 ITEPA
2003 (
EIM31620 onwards)
- travelling expenses under Sections 337 and
338 ITEPA 2003 (
EIM31810)
- professional fees and annual subscriptions
under Sections 343 and 344 ITEPA 2003 (
EIM32880)
- the expenses of a minister of religion
under Section 351 ITEPA 2003 (
EIM60040).
Benefits which are used for business entertaining will not
usually qualify for a deduction under Section 336 (
EIM32630).
