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

Personal Tax

Payment of tax due under self assessment

Payment of tax due under self assessmentNormal due dateIndividuals are usually required to pay any outstanding income tax, Class 2 and Class 4 national insurance, and capital gains tax due for the tax year by 31 January following the end of the tax year (ie 31 January 2025 for the 2023/24 tax year).

14 Jul 2020 12:52 | Produced by Tolley Read more Read more
Owner-Managed Businesses

Bad debts

Bad debtsBad debts usually arise where goods or services have been provided to a customer, for which payment has not been received within a reasonable or specified time period, or for which the customer is unable to pay. It is necessary to determine the quantum of relief that can be claimed for bad

14 Jul 2020 15:34 | Produced by Tolley Read more Read more

Exemption ― insurance ― overview

Exemption ― insurance ― overviewThis guidance note provides an overview of the VAT treatment of insurance products and should be read in conjunction with the Insurance ― specific transactions and Exemption ― insurance ― brokers and agents guidance notes.Is insurance exempt from VAT?Supplies of

Read more Read more