News-direct-commuting costs

Commuting costs

Ordinary commuting journeys between a permanent workplace and home are private journeys for tax and National Insurance purposes, so if the cost of that journey is met by the employer it is a benefit in kind. There are circumstances, however, when an employee's journey home from work late at night, paid for by his employer, may be exempt from a tax and National Insurance charge. HMRC have published draft guidance which is intended to clarify what those circumstances are and explains how to apply the criteria to decide whether or not the journey is exempt from tax and National Insurance.
Although not a formal consultation, HMRC would like to know whether the guidance provides the necessary clarity to assist employers in the day to day application of the rules and whether it could be made simpler to understand and apply in practice. The guidance will be available for comment for five weeks. HMRC intend to include the new guidance in the Employment Income Manual at EIM 21831 to 21834 under 'T' for taxis and create a link to it from the current guidance at EIM 21731.
www.hmrc.gov.uk

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