Flexible Benefits: Tax Treatment Follows the Underlying Item

Separate taxable and exempt reimbursements

Employment gains include cash and non-cash benefits, including benefits extended to an employee’s family or friends. An existing exemption or concession still applies inside a flexible scheme: qualifying medical reimbursement remains non-taxable, while holiday reimbursement remains taxable. Track taxable claims and report them in Form IR8A rather than treating every reimbursement from the budget the same way.