HMRC internal manual

Employment Income Manual

EIM31801 - Travel expenses: signposting: introduction

Overview

In order to determine if a deduction is available for travel expenses, there are two main tests to consider (see EIM31805). For each test, there are general rules to be met (see EIM31810) as well as several specific rules. The guidance and examples within this manual provide details of these specific rules and may help to determine if a deduction is available.

These tests and rules also apply when considering if a deduction is available for travel expenses for employees working under flexible or hybrid working arrangements. Guidance which may be of particular use in these circumstances can be found at:

Content Guidance
Travel in the performance of the duties: travel to and from home where it is a place of work EIM32370
Travel in the performance of the duties: travel to and from home where it is a place of work: case law EIM32371
Travel for necessary attendance: definitions: ordinary commuting EIM32055
Travel for necessary attendance: employees who work at home EIM32170
Travel for necessary attendance: employees who work at home: example EIM32171
Travel for necessary attendance: employees who work at home: example EIM32172
Travel for necessary attendance: employees who work at home: example EIM32173
Travel for necessary attendance: employees who work at home: hybrid working: example EIM32174

Guidance on the availability of deductions and exemptions for other provisions or expenses incurred whilst working under flexible or hybrid working arrangements can be found at:

Content Guidance
Expenses, benefits and tax relief for employees who work at home EIM01471
Employees who work at home: examples EIM32790
Working from home: pandemics EIM32795
Home: household expenses EIM32810
Home: household expenses: relationship between deduction for employee’s expenses and exempt homeworking payments: examples EIM32830

Travel expenses may be deductible where the travel is in the performance of the duties of the employment, or where the travel is for necessary attendance in the performance of the duties.

Travel in the performance of the duties

Section 337 ITEPA 2003 permits relief for travelling expenses necessarily incurred in travelling in the performance of the duties of the employment.

Subject to certain conditions, travel may be considered to be in the performance of the duties of the employment, where:

  • travel is between workplaces,

  • travel is between home and work, where home is workplace (EIM32760) and the place where the employee lives is dictated by the requirements of the job , or
  • a travelling appointment is held

Further signposting for guidance on this test can be found at EIM31803.

Travel for necessary attendance in the performance of the duties

Section 338 ITEPA 2003 permits relief for the cost of travel for necessary attendance at any place in the performance of the duties of the employment.

Travel for necessary attendance includes journeys that employees make to or from a place they must attend in the performance of their duties, but not journeys that are ordinary commuting or private travel (see EIM32050)

Further signposting for guidance on this test can be found at EIM31802.

Additional Guidance

Additional guidance on accommodation and subsistence (EIM31815), choice of route (EIM31825), travel cards (EIM31833), scale of expenditure (EIM31835), directors’ travelling expenses (EIM31925), travel to meetings of trade or professional associations (EIM31945) and overseas conferences, seminars and study tours (EIM31950) is also available.