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HMRC internal manual

Employment Income Manual

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HM Revenue & Customs
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Travelling expenses: employees working abroad: expenses that may be deducted: example

An employee who is resident in the United Kingdom is sent by her employer to work in Germany on secondment for 8 months. The employer pays the travel expenses of the employee and her husband and also pays for their accommodation or subsistence while they are in Germany.

Some of the expenses met by the employer are deductible under Section 338 ITEPA 2003 (travel for necessary attendance), some are deductible under the special rules for employees working abroad (Sections 370 and 371 ITEPA 2003) and some are not deductible at all.

The cost of the employee’s travel to and from Germany is deductible under Section 338 because Germany is a temporary workplace, see EIM32065. If it were not deductible under that section it would be deductible under Section 370, see EIM34040.

The cost of the employee’s husband’s travel to and from Germany is not deductible under Section 338, see EIM31980. It is deductible under Section 371, see EIM34050.

The employee’s accommodation or subsistence is deductible under Section 338, see EIM31815. If it were not deductible under that section it would not be deductible under Section 370, see EIM34040.

The employee’s husband’s accommodation or subsistence is not deductible under Section 338 (see EIM31980) and nor is it deductible under Section 371, see EIM34050.

This is summarised in the table below.

### Employee ### Husband ### Deductible? ### Statute
       
Travel   Yes Section 338
  Travel Yes Section 371
Accommodation or subsistence   Yes Section 338
  Accommodation or subsistence No