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Income Tax (Earnings and Pensions) Act 2003

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Point in time view as at 17/12/2014.

Changes to legislation:

Income Tax (Earnings and Pensions) Act 2003, Chapter 3 is up to date with all changes known to be in force on or before 06 March 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

Chapter 3U.K.Taxable benefits: expenses payments

70Sums in respect of expensesU.K.

(1)This Chapter applies to a sum paid to an employee in a tax year if the sum—

(a)is paid to the employee in respect of expenses, and

(b)is so paid by reason of the employment.

(2)This Chapter applies to a sum paid away by an employee in a tax year if the sum—

(a)was put at the employee’s disposal in respect of expenses,

(b)was so put by reason of the employment, and

(c)is paid away by the employee in respect of expenses.

(3)For the purposes of this Chapter it does not matter whether the employment is held at the time when the sum is paid or paid away so long as it is held at some point in the tax year in which the sum is paid or paid away.

(4)References in this Chapter to an employee accordingly include a prospective or former employee.

(5)This Chapter does not apply to the extent that the sum constitutes earnings from the employment by virtue of any other provision.

71Meaning of paid or put at disposal by reason of the employmentU.K.

(1)If an employer pays a sum in respect of expenses to an employee it is to be treated as paid by reason of the employment unless—

(a)the employer is an individual, and

(b)the payment is made in the normal course of the employer’s domestic, family or personal relationships.

(2)If an employer puts a sum at an employee’s disposal in respect of expenses it is to be treated as put at the employee’s disposal by reason of the employment unless—

(a)the employer is an individual, and

(b)the sum is put at the employee’s disposal in the normal course of the employer’s domestic, family or personal relationships.

72Sums in respect of expenses treated as earningsU.K.

(1)If this Chapter applies to a sum, the sum is to be treated as earnings from the employment for the tax year in which it is paid or paid away.

(2)Subsection (1) does not prevent the making of a deduction allowed under any of the provisions listed in subsection (3).

(3)The provisions are—

  • section 336 (deductions for expenses: the general rule);

  • section 337 (travel in performance of duties);

  • section 338 (travel for necessary attendance);

  • section 340 (travel between group employments);

  • [F1section 340A (travel between linked employments);]

  • section 341 (travel at start or finish of overseas employment);

  • section 342 (travel between employments where duties performed abroad);

  • section 343 (deduction for professional membership fees);

  • section 344 (deduction for annual subscriptions);

  • section 346 (deduction for employee liabilities);

  • section 351 (expenses of ministers of religion);

  • section 353 (deductions from earnings charged on remittance).

Textual Amendments

F1Words in s. 72(3) inserted (with effect in accordance with art. 4 of the amending S.I.) by The Enactment of Extra-Statutory Concessions Order 2014 (S.I. 2014/211), arts. 1, 3

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