The Finance Act 2015 (c.11) (“FA 2015”) made various amendments to the Income Tax (Earnings and Pensions) Act 2003 (c.1) (“ITEPA”) with a view to simplifying the way in which benefits and expenses provided to employees are taxed. FA 2015 inserted new Chapter 7A into ITEPA which exempts certain amounts which have been paid or reimbursed to employees in respect of expenses, where a deduction from income tax would previously have been available. An exemption from income tax is provided for amounts paid or reimbursed to employees where those amounts have been calculated and paid or reimbursed in an “approved way”. These Regulations specify an approved way of calculating and paying or reimbursing expenses for the purposes of the section 289A exemption.