Supporting Guidance: employer compliance: guidance by subject: working rule agreements (WRA): action to take on daily travel payments
The two elements of daily travel below are explained at COG930590.
Travelling time allowance
Payment for travelling time should be included in gross pay.
Where travelling time payments and fares allowance payments are paid as a single sum the employer will have to identify the travelling time element. You should check that
- the employer has identified sums in respect of travelling time and
- they have been included in gross pay
You should check that
- the amounts paid are within the prescribed rates and
- the payments have suffered deductions in accordance with the special tax and NIC arrangements.
- (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
In addition, where a WRA does not provide for payment based on a mileage rate but the employer has none the less used one, you should:
- make sure that the employer has made deductions in full from any payment made for the initial threshold distances
- use 12.5 pence per mile as a deduction free amount beyond the initial threshold distance.
Daily travel payments treated incorrectly
Where you find that payments have not been treated correctly you should
- advise the employer of the correct procedure for the future (COG930530)
- explain how to make any necessary open year adjustments and
- seek recovery for closed years, where appropriate.