Disabled employee benefits

Produced by Tolley in association with Paul Tew

The following Employment Tax guidance note Produced by Tolley in association with Paul Tew provides comprehensive and up to date tax information covering:

  • Disabled employee benefits
  • Introduction
  • Reporting requirements
  • Exemption
  • Commuting
  • Cars
  • Guide dogs
  • Accompanying companion

Disabled employee benefits


Many employers will provide specialised equipment to disabled employees in order to allow them to perform their employment duties. The provision of equipment for disabled employees is encouraged by legislation and in most instances, will not attract a charge to tax under the expenses or benefits legislation.

Reporting requirements

As long as the requirements outlined below are met, there are no tax, NIC or reporting requirements associated with the provision of relevant equipment or transport or reimbursement of expenses to disabled employees.


Regulations (SI 2002/1596) made under ITEPA 2003, s 210 provide for an exemption from income tax for benefits provided to disabled employees as long as a benefit satisfies all of the following requirements:

  1. the benefit is provided to a disabled employee

  2. the main purpose is to allow the employee to perform their employment duties

  3. it consists of a provision of a hearing aid or other equipment, services or facilities excepting any excluded benefit within the meaning in ITEPA 2003, s 316, ITEPA 2003, s 210 and Regulations made under that section.

  4. the benefit is provided under, or within the terms of, the Disability Discrimination Act 1995 and now incorporated into the Equality Act 2010, the Access to Work programme or any other statutory provision or arrangement, whether or not the employer has a legal requirement to provide the benefit, and

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