Disabled employee benefits

By Tolley in association with Philip Rutherford

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

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


Many employers will provide specialised equipment to disabled employees in order to allow them to perform their 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.


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

  • the benefit is provided to a disabled employee
  • the main purpose is to allow the employee to perform his duties
  • it consists of a provision of a hearing aid or other equipment, services or facilities which is not an exception
  • the benefit is provided under the Disability Discrimination Act 1995 (subscription sensitive), 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
  • the benefit is made available to all of the e

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