Tx notes fa22 Final

reward
‣
The employee does not provide his own 
equipment
.

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3.
 
Assessable emoluments 
Individuals are assessed on the amount of emoluments received in the tax year. The date received is 
taken as the earlier of the date when the employee became entitled to the payment or the date when 
it was actually received by the employee.
 
Emoluments includes: 
๏
wages
๏
salary
๏
bonus
๏
commission
๏
benefits
4. Deductibility of expenses from employment income 
The following expenditure is deductible: 
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Contributions to approved occupational pension schemes (within certain limits see chapter 10)
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Fees and subscriptions to relevant professional bodies
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Payments to charity made under a payroll deduction scheme
๏
Travel expenses incurred necessarily in the performance of the duties of employment
๏
The general rule is that expenses must be incurred wholly, exclusively and necessarily in the 
performance of the duties of employment
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Capital allowances are available for plant and machinery provided by an employee for use in 
his duties
5. Approved mileage allowances 
(a)
Travel and subsistence expenses may be deducted if they are necessarily incurred in the 
performance of the employment duties, or for the necessary attendance at any place in the 
performance of the duties. NOT home to normal workplace - this is a private expense.
(b)
For 2022/23 the approved mileage allowance is 45p per mile for the first 10,000 business 
miles, and then 25p per mile thereafter.
(c)
Employees who use their own motor car for business mileage must use the approved mileage 
allowances in order to calculate any taxable benefit arising from any mileage allowances 
received from their employer. 
(d)
Employees who use their motor cars for business mileage without being reimbursed by their 
employer (or where the reimbursement is less than the approved mileage allowances), can use 
the approved mileage allowances as a basis for an allowable deduction.