EIM20607 - The benefits code: deductions for expenses payments received: example
Section 70 ITEPA 2003
An employee (who for 2015/16 and earlier is not in an excluded employment (EIM20007)), is reimbursed the following expenditure.
| Expenditure | Amount |
|---|---|
| Business travelling | £500 |
| Home to work travelling | £300 |
| Allowable professional subscriptions | £50 |
| Total | £850 |
The payment of home to work travelling costs is not allowable as they are not incurred in the performance of the duties or in travel to a temporary workplace. The employee’s tax liability will therefore include
| Item | Amount |
|---|---|
| Reimbursed home to work expenses taxable as earnings (EIM10020 and EIM20602) | £300 |
| Reimbursed business travel and professional subscriptions | £550 |
| Deductible expenses | (£550) |
| Taxable expenses | £300 |