Non-taxable benefits

By Tolley
Non-taxable benefits

The following Employment Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Non-taxable benefits
  • Exemptions
  • Benefits covered by deductions
  • Optional remuneration arrangements

The basic rule is that all benefits provided to an employee by reason of their employment are taxable unless there is a specific exemption or other rule that means they are not chargeable to tax.

Exemptions

The main exemptions for employee benefits are in ITEPA 2003, ss 227326B (Pt 4).

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. This guidance note does not include business expenses, it covers only benefits provided for the employee for their own use or enjoyment.

If a benefit qualifies for an exemption, there is no need to record it on form P11D.

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

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