![]() An employee may work full-time at a particular site for a period of up to two years and it can still be treated as a temporary workplace. Workplaces attended to perform a task of limited duration and the task does not last ( and is never considered likely to last) more than 24 months or most of the period of the employment are temporary workplaces.Īn employee may work occasionally at one site for many years but the site may remain a temporary workplace because the visits are occasional. The amount is taxed by being recorded on P11D and Class 1A (employers only) NI is paid on P11D(b). If the company arranges and pays for the travel then no entries needed on payslips. If the employee arranges the travel but the company pays the supplier directly, the amount must be shown as taxable on P11D but subject to national insurance (employees and employers) on payslips. If the employee pays for the travel and the employer reimburses this, the grossed up amount must be shown on payslips. If payments are made for round sums or an allowance is paid in advance then P11D will be required to show the expenses, which can also be claimed as deduction on P87 or self-assessment tax return.Īll other travel expenses paid by the company, including all travel to a permanent workplaces (except travel between workplaces), all commuting and all private travel are taxable on the employee or director and subject to national insurance. No entries are required on payslips for the above types of travel.Īs long as the company is reimbursing actual expenditure then no P11D entries are needed. Therefore travel from home to permanent workplace is taxable.Ĭonsequence of travel expenses that are not taxable on the employee Note, travel from home or any non-workplace to a permanent workplace or permanent work area is not be covered by this rule even if home is also a workplace. ![]() The employee may travel there directly from home without first going to their normal place of work, or return directly home after the visit. This is assuming that the employee is required to attend this temporary workplace to fulfil their employment duties (there must be a necessity to attend the temporary work place, not just a preference to do so).Īn employee’s expenses of travelling to a customer’s place of business or to a supplier would not be taxable. Travel to a temporary workplace will not be treated as a taxable benefit for the employee. Travel for necessary attendance at a temporary workplace (ITEPA 2003, s. home is a bed and breakfast business, a farmhouse for the business of training dogs for the disabled in a home environment – per HMRC guidance). The only exception is if the nature of duties are such that they have to be carried out home (e.g. Home is usually not counted as a workplace for this purpose. If your company has more than one office and you are required to travel between them in order to carry out your duties then this would not be taxable. Travel between workplaces (of the same employment) is not taxable on the employee or director only if attendance at both workplaces is a requirement of the work. This category does not include regular travel between home and work as this is before and after the performance of duties, rather than during the performance of duties. For an example an IT engineer visiting various sites from their main workplace, as and when the need arises, would be travelling in the performance of duties. Such journeys include visiting a client’s premises on occasional irregular basis. Travel in performance of an employee’s employment duties is not taxable. ![]() ![]() Travel in performance of duties (ITEPA 2003, s. Travel expenses that are not taxable on the employee References to “travel expenses” include all travel and associated subsistence and accommodation costs. These notes apply to directors (including owner managers of companies) and any employees of the company – all referred to as “employees” below. However, some travel costs paid for by your company may need to be included on payslips or as a taxable benefit in kind. The company includes such costs as an expense in its accounts and only pays tax on the profits which are stated after deducted all such expenses. Travel costs for employees and directors are always tax deductible for the company. Are your, or your employees’, travel costs taxable?
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