Income Tax (Earnings and Pensions) Act 2003 section 71

Meaning of paid or put at disposal by reason of the employment

Section 71 defines when expense payments made by an employer to an employee are treated as being made "by reason of the employment" for the purposes of this chapter.

• Expense payments from an employer to an employee are automatically treated as paid by reason of the employment
• Similarly, sums made available to an employee for expenses are automatically treated as put at the employee's disposal by reason of the employment
• An exception applies where the employer is an individual and the payment or provision arises in the normal course of the employer's domestic, family or personal relationships
• The exception recognises that individual employers may make payments to employees for reasons unrelated to the employment, such as within a household or family context