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HMRC internal manual

Employment Income Manual

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HM Revenue & Customs
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Travel expenses: general: accommodation and subsistence: other incidental costs

Sections 337 to 339 ITEPA 2003

Travel costs can include other incidental costs that form an integral part of the cost of the business journey. This could include toll fees, congestion charges, vehicle hire charges or car parking.

Some expenditure that an employee might incur while making a business journey is not expenditure attributable to that journey and so is not deductible. This will include, for example, private telephone calls, newspapers and laundry. However, if the employer pays an amount for such incidental overnight expenses there is a specific statutory exemption that can apply, see EIM02710.

No deduction is due for costs arising as a result of the business travel that stem from the personal circumstances of the employee. For example, no deduction is due for the cost of a baby sitter that the employee may need to pay while away from home.

Where relief for business travel using an employee’s own vehicle or bicycle is given at statutory mileage allowance relief rates (see EIM31200 onwards) a distinction must be drawn between costs that are incurred in connection with the use of that vehicle and other costs of business travel.

No relief is permitted for actual costs that are incurred in connection with the use of that vehicle. This might include petrol, oil, servicing, repairs, car hire charges and other costs of using that vehicle. All of these costs are replaced by the statutory rate, see EIM31240.

Relief is still permitted for the actual cost of other expenses resulting from the business travel. These are expenses that would be incurred regardless of the mode of travel or that are not specific to the particular vehicle that is being used. This might include toll fees, congestion charges or car parking.