HMRC internal manual

Employment Income Manual

EIM35030 - Travelling expenses: employees working but not domiciled in the United Kingdom: travel between the home country and the United Kingdom

Sections 373 to 375 ITEPA 2003

Provided all of the conditions below are satisfied, allow the cost of a non domiciled employee’s journeys:

  • from the country outside the United Kingdom in which the employee normally lives to any place in the United Kingdom where duties are performed (see below) and
  • returning there after performing his or her duties in the United Kingdom.

The conditions are as follows:

  • the employee who is not domiciled in the United Kingdom:
    • receives earnings from an employment for duties performed in the United Kingdom and
    • an amount is included in the earnings in respect of the provision of travel facilities for a journey made by the employee or the reimbursement of expenses incurred by the employee on such a journey
  • the earnings are charged on receipt (deductions under Sections 373 to 375 cannot be given against earnings charged on remittance under either Section 22 ITEPA 2003 (see EIM40102) or Section 26 ITEPA 2003 (see EIM40304)
  • the journey ends within five years of the employee’s qualifying arrival in the United Kingdom (see EIM35060).

Unlimited number of journeys

There is no limit to the number of qualifying journeys that can be made. The employee’s journey home can be made for any purpose provided it is made after performing the duties in the United Kingdom.

Journeys having dual purpose

An employee’s journey to the United Kingdom may be made partly in order to perform the duties of the employment and partly for some other purpose. If so, limit the deduction to the amount properly attributable to the business purpose.

Journeys to or from a place in the United Kingdom

The requirement that the journey must be to a place in the United Kingdom in order to perform duties of the employment should be interpreted broadly. Travel to the place where the employee lives in the United Kingdom whilst performing the duties will qualify.