In many cases the reimbursement of an expense, or the provision of a benefit to an employee does not result in any additional tax liability, because the employee can claim a deduction in their tax return on the basis that the expense or benefit was 'wholly, exclusively and necessarily incurred in the performance of the duties of the employment'1.
For 2015/16 and earlier years, an employer could save itself the trouble of making statutory returns of the allowances and benefits and save its directors and employees the trouble of claiming corresponding deductions by applying for a dispensation2. HMRC guidance continues to be available at EIM30050–EIM30098. For 2016/17 onwards the dispensations
To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to Tolley+™ Research or register for a free trial
Web page updated on 17 Mar 2025 13:15