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Updated guidance of the rules for travel and subsistence

19.05.2022

Private Client

Rules for travel and subsistence change

 

 

 

 

 

 

With employees’ and directors’ P11ds for 2021/22 due by 6 July 2022 … 

… it is timely to remind employers of the rules for travel and subsistence, particularly as HMRC have recently issued updated guidance and useful examples of their interpretation of the law.  

 

 

There are a number of criteria for determining if a workplace is temporary or permanent, but in general, a workplace will always be a permanent workplace if the worker: 

 

  • regularly goes there for a period of continuous work which lasts (or is likely to last) more than 24 months; or  

• regularly goes to the same workplace for all (or almost all) of the time for which the worker is likely to hold (or continues to hold) the same employment. 

 

Where the journey qualifies for tax relief then reasonable subsistence costs associated with that journey would also qualify for tax relief, and if paid (or reimbursed by the employer) would not be taxable employment income.  
  

Expenses (such as travel and subsistence) incurred wholly, exclusively, and necessarily in the performance of someone's employment no longer needs to be reported on form P11d.  Also, a dispensation from reporting is no longer required but HMRC expects there to be controls in place

within the organisation to review and approve the expenditure. 

 

For further information, refer to https://www.gov.uk/hmrc-internal-manuals/employment-status-manual/esm5510.   

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