Common exempt or non-taxable benefits

Copyright © 2025 LexisNexis
Produced by a Tolley Employment Tax expert
Employment Tax
Guidance

Common exempt or non-taxable benefits

Copyright © 2025 LexisNexis
Produced by a Tolley Employment Tax expert
Employment Tax
Guidance
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Generally, benefits provided to an employee are taxable unless there is a specific exemption or other rule that means they are not chargeable to tax. See the How might non-cash income and benefits be taxed? guidance note. This note looks at those benefits which are not taxable.

Exemptions

The main exemptions for employee benefits are in ITEPA 2003, ss 227–326B (Pt 4). For examples which are exempt, there is no P11D reporting requirement, no tax due and no Class 1A NIC due.

Below is an alphabetical list of the main exempt benefits, a brief description of each and a link to the relevant guidance note on the subject:

BenefitBrief details of exemption requirementsRelevant guidance note
Annual parties and similar annual social eventsThe total cost per head of all such functions in the tax year is less than £150 including VATAnnual parties
Armed forces’ travel to take leaveCovers any form of travel provided to enable members of the armed forces to go on or return from leaveArmed forces
Bicycles

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  • 21 Nov 2023 11:21

Home/ Tolley Tax Guidance/ Employment Tax / PAYE for employees

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