Tax treatment of building and civil engineering employees: travelling allowances: building industry in general
When travelling to a place of work that is more than 6 kilometres (3.73 miles) from home, workers employed under the working rule agreement (see EIM71300 onwards) of the Construction Industry Joint Council (CIJC), are entitled to receive the following allowances:
- a daily fares allowance, on a scale revised annually, for each kilometre (0.62 miles) or part kilometre in excess of the first 6 kilometres
- a daily travelling allowance for each kilometre (0.62 miles) or part kilometre in excess of the first 6 kilometres.
Where transport is provided free by the employer, only the travelling allowance (b above) is payable. Such travelling allowances are equivalent to travelling time payments and are taxable in all circumstances. Fares allowances (a above), however, are not regarded as taxable, provided they are paid at the rates currently in force, and may be paid in full. (This content has been withheld because of exemptions in the Freedom of Information Act 2000)