Commentary on Sections Example 3 £150(Pe) – £50(E) = £100 Section 179: Exception for certain advances for necessary expenses
694.This section provides that, where certain conditions are met, small temporary advances of expenses by an employer to an employee for necessary expenditure are not taxable cheap loans. It derives from Inland Revenue Statement of Practice 7/79. It is a minor change to law. See Change 29 in Annex 1.
695.Subsection (1) provides that advances by an employer to an employee for necessary or incidental overnight expenses are not taxable cheap loans where certain conditions are met. Subsection (2) sets out those conditions.
696.Subsections (3) and (4)  provide that the limits for two of the conditions can be extended.
697.Subsections (5) to (7)  define terms used.