Income Tax (Earnings and Pensions) Act 2003 section 334

Effect of reimbursement etc.

Section 334 deals with what happens when an employee's work expenses, which would otherwise qualify for a tax deduction, are reimbursed by another person such as the employer.

• An employee is still treated as having paid an expense even if it is subsequently reimbursed or covered by a payment from someone else
• A tax deduction for the expense is only allowed if, and to the extent that, the reimbursement or other payment is included in the employee's taxable earnings
• This section does not apply to expenses of ministers of religion, which are dealt with separately under section 351
• This section is disregarded for the purposes of the deductibility provisions defined elsewhere in the chapter