| Employment Income: Deductions and Expenses |
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18A.3.5 ITEPA Part 5 Chapters 3, 4, 5 and 6 |
One of the strengths of ITEPA is to bring together the various rules relating to deductions many of which previously referred across to the rules in chapter 2. One of its weaknesses is putting the particular before the abstract. |
Part 5 chapter 3 deals with deductions from three types of benefits code earnings and in particular those relating to (a) vouchers etc, (b) living accommodation and (c) general or residual charge in the benefits code ie parts 3, 4 and 10 of chapter 3. A deduction may well also be claimed under chapter 5 of part 5 but these are alternatives.118 Section 362 allows a deduction where a non—cash voucher within section 87 is provided and, if the employee had incurred and paid the costs, there would have been a deduction under chapter 2 above or chapter 5 below.119 The deduction is not to exceed the amount treated as earnings.120 Similar rules are enacted for credit token within section 92, or living accommodation is provided and falls under chapter 3 part 3 or the benefit comes within the general charge under part 10 of chapter 3.121 |
Part 5 chapter 4 (sections 366–368) authorises fixed sum allowances for repairing and maintaining work equipment (previously concession A1) or payable out of the public revenue; the allowances are set down by the Treasury. |
Part 5 chapter 5 (sections 369–377) brings into the deductions part of the Act four rules of which three are international and so have already been treated in chapter 13A.3.2. The other operative section 377, concerns expenses on personal security assets and services.122 |
Chapter 6 covers the special 100% deduction for seafarers earnings and is beyond the scope of this book (see 4th edn and Tiley and Collison). |