Common exempt or non-taxable benefits

Copyright © 2026 LexisNexis
Produced by a Tolley Employment Tax expert
Employment Tax
Guidance

Common exempt or non-taxable benefits

Copyright © 2026 LexisNexis
Produced by a Tolley Employment Tax expert
Employment Tax
Guidance
imgtext

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

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
TAKE A FREE TRIAL NOW
Powered by Tolley+™
  • 21 Nov 2023 11:21

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

Popular Articles

Trusts and Inheritance Tax

Outright gifts

Outright giftsAn outright gift is the most straightforward type of gift. It simply involves the outright transfer of property from one person to another with no conditions attached.This type of gift is most suitable for clients who want to pass over modest amounts, or give to responsible and capable

14 Jul 2020 12:22 | Produced by Tolley in association with Emma Haley at Boodle Hatfield LLP Read more Read more
Corporation Tax

Research and development expenditure credit (RDEC)

Research and development expenditure credit (RDEC)This guidance note provides information on how research and development expenditure credits (RDEC) are calculated and utilised. The Qualifying expenditure for R&D tax relief guidance note provides information on what expenditure qualifies for

14 Jul 2020 13:24 | Produced by Tolley in association with Will Sweeney Read more Read more
Personal Tax

Interest and penalties on late paid tax under self assessment

Interest and penalties on late paid tax under self assessmentInterestIf the capital gains tax, the balancing payment or payments on account of tax and / or Class 4 national insurance contributions (NIC) are paid late, HMRC will charge interest on the amount overdue from the original due date. The

14 Jul 2020 12:00 | Produced by Tolley Read more Read more