Common exempt or non-taxable benefits

Produced by a Tolley Employment Tax expert

Employment Tax

Guidance

Generally, benefits provided to an employee are taxable unless there is a specific exemption or other rule that means they are not chargeable to tax. See the How might non-cash income and benefits be taxed? guidance note. This note looks at those benefits which are not taxable.

Exemptions

The main exemptions for employee benefits are in ITEPA 2003, ss 227–326B (Pt 4). For examples which are exempt, there is no P11D reporting requirement, no tax due and no Class 1A NIC due.

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:

Benefit	Brief details of exemption requirements	Relevant guidance note
Annual parties and similar annual social events	The total cost per head of all such functions in the tax year is less than £150 including VAT	Annual parties
Armed forces’ travel to take leave	Covers any form of travel provided to enable members of the armed forces to go on or return from leave	Armed forces
Bicycles

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