§ Sir H. Williamsasked the Chancellor of the Exchequer whether allowances paid by a trader to his employés to meet the bona fide extra expenses thrown on them by the evacuation of their place of employment are regarded as a charge against the profits of the trader; and whether such allowances are regarded as proper expenses of, or an addition to, the income of the recipients?
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§ Captain CrookshankThe answer to the first part of the Question is in the affirmative. The question to what extent expenses allowances paid to employés constitute additional remuneration depends upon the facts of the particular case, but where extra expenses are necessarily incurred by an employéby reason of the evacuation of his place of employment and a specific payment is made to him by the employer in respect of those expenses, which does no more than cover them, the payment would not be regarded as increasing his income for Income Tax purposes.