51茶馆

鈥�10. Expenses payments received from an employer

[Note: see EIM70705 for changes to the law since these notes were published]

In the absence of a 鈥渄ispensation鈥� given to the employer under Section 166 ICTA 1988, expenses reimbursed to 鈥渉igher-paid鈥� employees will rank as assessable income upon the employee since the latter鈥檚 emoluments are deemed to include not only stipend but also reimbursement of expenses. 鈥淗igher-paid鈥� employees are, for 2015/16 and earlier only, employees whose total emoluments for the tax year from a particular employer, including all expenses payments and benefits before the deduction of any allowable expenses, are 拢8,500 or more (tax year 1979/80 onwards).

Inspectors will usually grant a 鈥渄ispensation鈥� for routine travelling and subsistence payments for genuine 鈥渂usiness鈥� journeys in the UK.

It has now been agreed that, in general, reimbursement of expenses will not be taxed where incurred

• in attending a conference directly related to university and college etc, work
• on entertaining directly connected with a teacher鈥檚 duties (for example arising from tutorial or supervision duties or on the occasion of official visits)
• in relation to external examining work (although fees received will be paid under deduction of tax).

Provided that in each case the Inspector is reasonably satisfied that the reimbursement does not exceed the expenditure actually incurred. 鈥淭utorial or supervision duties鈥� include visiting students in 鈥渨ork places鈥� (for example, on 鈥渟andwich鈥� degree courses) involving expenditure in entertaining both the student/employee and his employer, but not the holding of tutorials or classes at a teacher鈥檚 home for reasons of his own convenience.鈥�