SE20502 - Benefits and expenses payments within Part V Chapter II: “by reason of the employment” - expenses paid and benefits provided by employer

Section 168(3) ICTA 1988

Subject to one exception, all sums paid to an employee by his employer in respect of expenses and all benefits provided for him by his employer are deemed to be made or provided “by reason of the employment”. See SE21220 for identifying the person providing a benefit.

The one exception is when the employer is an individual and he can show that the payment was made or the benefit was provided in the normal course of his domestic family or personal relationships. Thus a father who employs his son will normally be able to show that a Christmas present he gives to his son is not “by reason of the employment”.