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HMRC internal manual

Employment Income Manual

From
HM Revenue & Customs
Updated
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Tax treatment of engineering design employees: guidelines issued by the Federation of Engineering Design Companies: travelling expenses

“2. Travelling expenses

a. An employee will qualify to be reimbursed travelling expenses when he is away from his normal place of employment.

b. The employee should plan his journey to avoid unnecessary expense, and any unnecessary expenses will not be reimbursed by the employer.

c. The expenses reimbursed will not be more than were actually incurred.

d. The cost of travel from home to the normal place of employment is the responsibility of the employee and will not qualify for reimbursement, except where the employee is called back to the office outside normal working hours (e.g. for evening or special weekend overtime) - such reimbursements will be taxable.

e. Where frequent journeys are made to the same site so that the employee is able to save expenses by making alternative arrangements, he will be expected to make such arrangements, and will be reimbursed accordingly (e.g. he will be expected to purchase weekly or monthly season tickets where appropriate).

f. Taxi fares are only payable in the following circumstances:-

  • when secret or confidential papers are being carried which it is considered inadvisable to carry on public transport;
  • when there is an urgent need to save time;
  • when bulky work materials or luggage other than hand luggage are being carried;
  • when there is no suitable transport.”