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HMRC internal manual

Employment Income Manual

Travel expenses: general: introduction

Sections 337 to 339 ITEPA 2003

The tests imposed by Sections 337 to 339 ITEPA 2003 for travel expenses are different to the tests imposed by Section 336 ITEPA 2003 for other expenses. The tests that apply are summarised below and the principal difference up to 1997/98 was the absence of any wholly and exclusively test. The effect of this is illustrated by example EIM31811.

Since 1998/99 there have been two separate rules governing deductions for employee travel expenses. These are:

  • travel in the performance of the duties of the employment, see EIM32350 and
  • travel for necessary attendance, see EIM32000.

Since 2002/03 further changes have affected the amount of relief to which employees are entitled if the use their own vehicle or bicycle for business travel. Relief is given at a fixed statutory rate and not for the actual costs incurred. The changes are summarised at EIM31626.