TCTM04206 - Income: Employment income rules - Specific payments and benefits in kind excluded from employment income for tax credit purposes: Incidental Overnight Expenses

The Tax Credits (Definition and Calculation of Income) Regulations 2002, Reg. 4(4), Table 1 (Item 6).

Payment of incidental overnight expenses falling within section 240 of ITEPA.

This is the income tax exclusion (see Employment Income Manual para EIM02710).

Note: With effect from 6 April 2017 the way in which many salary sacrifice and benefit in kind schemes are taxed will change, which means that some tax credit claimants will see an increase in their taxable income.

For the purposes of tax credits, where one of these schemes is in operation the taxable income figure should be used.