Sarah Bradford explores when tax relief may be available for travel expenses incurred by an employee, and the position where working arrangements changed because of the Covid-19 pandemic.
The rules governing the availability of tax relief for travel expenses incurred by employees, and those reimbursed by their employer, are complex.
The normal rules that govern the deductibility of expenses incurred by employees do not apply to travel expenses; instead, they have their own set of rules. These are found in ITEPA 2003, ss 337–342. The rules set out when an employee is allowed a tax deduction in respect of travel expenses.
Expenses met by the employee vs paid or reimbursed by the employer
The same set of rules are relevant regardless of whether the expense is ultimately met by the employee, or whether the employer pays
