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Expenses paid by an employer normally fall under provisions in the benefits code¹. However, these provisions do not apply if the expenses constitute earnings under any other provision². In addition, the expenses provisions in the benefits code do not apply to lower-paid employments³. Hence it is necessary to consider whether a payment of expenses constitutes earnings under ITEPA 2003, s 62.

The cases and other authorities cited in this article relate to liability under the legislation that had effect before 2003/04, in other words, the Schedule E legislation rather than the rewritten legislation in ITEPA 2003 (see E4.101). Accordingly, since the principles described here were established, not only have the statutory provisions changed, but so has the terminology used; see E4.401. However, the overall effect of existing rules is not changed by ITEPA 2003; see E4.101. Indeed, to ensure that existing case law will apply to anything that counts as an emolument but is not listed in the definition of 'earnings' introduced by ITEPA 2003, there is a single reference