TCTM04107 - Income: Employment income rules

Any payments of expenses which are chargeable to income tax under sections 62 or 72 of the ITEPA 2003

The Tax Credits (Definition and Calculation of Income) Regulations 2002, Reg. 4(1)(b)

Expenses which count as earnings within section 62 of ITEPA are “round sum” expenses allowances which are payable irrespective of whether the employee spends it a particular way and reimbursement of an employee’s purely private expenses. Section 72 treats as earnings any expenses payments which do not fall within section 62: for example, this includes those expenses such as mileage allowances paid by an employer to an employee for the use of his own car on business (other than those on which there is no liability to income tax under s229-236 ITEPA 2003).