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HMRC internal manual

Employment Income Manual

From
HM Revenue & Customs
Updated
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Tax treatment of working rule agreements: consequences for employee

The rules on employee travel and subsistence mean that:

  • an employee who receives tax free allowances under the terms of a working rule agreement may be entitled to a deduction under Sections 337 to 338 ITEPA 2003 for further expenses he or she incurs out of their own pocket and
  • an employee who does not receive tax free allowances under a working rule agreement may be entitled to a deduction under Sections 337 to 338 ITEPA 2003 for the whole expense.

For details of the rules on employee travel and subsistence see EIM31800. For an example showing how the rules apply in cases involving working rule agreements see Booklet 490 Section 8.27.