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HMRC internal manual

Employment Income Manual

Travel expenses: general: directors' travelling expenses: Extra-Statutory Concession A4: directors who are acting on behalf of a professional practice: example

A solicitor is a partner in a local firm. She is executor to the estate of a person who was the only shareholder in a property holding company. As part of her duties as executor she becomes a director of the company and arranges for it to be sold. She visits a number of people who are interested in buying the company and the company reimburses her for the cost of these journeys.

Extra-Statutory Concession A4 applies. The director is not assessed to employment income on the travelling expenses paid to her by the company as long as the expenses she incurs are not deducted in computing the profits of her partnership for Trading Income purposes.