We have seen over recent years a much more fluid workforce evolve throughout the UK business sector.
Whilst many employees do travel to and from a single workplace on a daily basis it is now very common for employees to be much more mobile, travelling between different sites in the business, working in different regions on a regular basis, or indeed working from home. An employer may pay for travel costs for such trips together with associated meal costs and perhaps accommodation where an overnight stay is required.
The rules around the tax treatment of such costs is complex; where an employee is travelling to what is referred to as a “temporary” workplace then the costs paid or reimbursed by the employer will not be taxable. A visit to a client, supplier or customers premises would certainly fit into this category.
The position around other offices, sites or depots of the employing business can be less clear. This is recognised by HMRC and is an area of regular review by them. Where an employer visits a base other than his usual workplace on a regular basis for ongoing duties, rather than visiting for specific “self-contained” ones, it is possible that the other site may be considered a second permanent workplace. Where this is the case the expenses will be taxable.
We advise multi-site businesses and those with mobile employees on the tax issues to consider and help to structure tax efficient solutions.
If you would like to discuss further how we can help with any of the above, please contact a member of our team.