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HMRC internal manual

Employment Income Manual

Employment income: travelling and subsistence payments: travel between places of work

Sections 62 and 72 ITEPA 2003

A reimbursement of expenditure actually incurred by an employee in travelling between two or more places of work is not “earnings” within Section 62 ITEPA 2003. This is because the expenditure would be allowable under Section 337 if the employee had paid it out of their remuneration, as he or she would be travelling in the performance of their duties (see Taylor v Provan (49TC12)).

To establish what is a place of work, the employee has to show that he or she performs substantive duties at the place in question. If the employee claims that their home is a place of work, see EIM10030.

Bear in mind though that, all expenses payments are treated as earnings by Section 72 ITEPA 2003, subject to any deduction under Section 336, 337 or 338. See EIM10000 and EIM20601 (unless for 2015/16 and earlier, the employee is in lower paid employment).

From 6 April 2002, mileage payments which employers make to employees who use their own vehicle or bicycle for travel between two places of work are not chargeable to tax if they do not exceed the appropriate approved mileage allowance payment (AMAP) limit. Payments that exceed the AMAP limit will be taxed to the extent that they exceed the limit. Full guidance on the operation of the AMAP scheme is at EIM31200 onwards.