Income Tax (Earnings and Pensions) Act 2003 section 72

Sums in respect of expenses treated as earnings

Section 72 explains how sums paid to or for an employee in respect of expenses are treated as taxable earnings, and confirms that certain expense deductions may still be claimed against those amounts.

• Expense payments falling within this chapter are treated as earnings from the employment for the tax year in which they are paid or paid away
• This treatment as earnings does not prevent the employee from claiming allowable deductions for qualifying expenses
• Allowable deductions include those for general expenses, various categories of business travel, professional membership fees, and annual subscriptions
• Further deductions are available for employee liabilities, expenses of ministers of religion, and earnings charged on the remittance basis