Travel expenses incurred for business purposes by an employee are treated as deductible, subject to certain conditions. This document discusses these in detail, together with the situations in which travel expenses may or may not be deductible; issues with excessive reimbursements by an employer; travel expenses of workers supplied through intermediaries; and salary sacrifice arrangements.

Points discussed within this guidance note:

> Introduction

Employee travel expenses have specific tests which must be satisfied and are different from the general rule  for deductibility of expenses. Overnight allowance for working away, or travel expenses incurred in relation to a temporary workplace are likely to have a mix of personal and business purpose and therefore it is incumbent on an employer to keep the necessary processes, systems and controls to ensure that business and non business expenses can be correctly identified and recorded.

> Travel expenses

In order for a travel expense to be allowable, it must satisfy one of two tests: that it is 'necessarily incurred in the performance of duties' or the travel is 'for necessary attendance'. This note goes into further details as to how these tests have been applied.

> More about 'in the performance of duties' and 'necessary attendance'

> When are travel expenses not allowable?

Ordinary commuting is only a travel expense if a specific exemption applies. This section considers what is a permanent workplace, and what is a temporary workplace, and the employee travel expenses rules in relation to both.

> Ordinary commuting

> The key concepts

> Permanent workplace

> Temporary workplace

> Permanent or temporary workplace - considerations

> What travel expenses are allowable?

> Travel to a temporary workplace

> One-off visits

> Travel obligations

> Area employees

> Travel between group employments

> Expenses of elected representatives

> Travel expenses which may or may not be allowable

> Site-based employees

> Travel cards

> Accompanying spouses

> Travel expenses which are not allowable

> Level of reimbursement

> Travel expenses of workers supplied through intermediaries

> Salary sacrifice

> Recent reviews of travel and subsistence expenses

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