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Review of the travel and subsistence tax rules

28 February 2023 / Alastair Kendrick
Issue: 4878 / Categories: Feature , Office of Tax Simplification (OTS) , Employees
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Key points

  • Many employers have not given any consideration as to whether their travel and subsistence policy needs to be updated since the pandemic.
  • There is a growing population of workers who are considered to be ‘home-based’.
  • The tax rules relating to travel and subsistence are in ITEPA 2003 s 337 to s 342.
  • Employees who are considered ‘territory’ based can claim costs of travel and subsistence while travelling within the area in which they are based.
  • The Office of Tax Simplification report flags that there is a real need to bring the travel and subsistence rules in line with the current working arrangements.

The employment tax rules are fairly complex when it comes to travel and subsistence and getting things wrong could leave an employer exposed to a significant tax exposure.

Added to this there are those who consider the current tax rules are no longer really ‘fit for...

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