Tax tip: 12 October 2023

The provision of a taxi or private transport home after working late is treated as an exempt benefit under ITEPA 2003 s 248 where the following conditions are met:

• the employee has not had more than 60 exempt journeys in the tax year;
• the employee has to work until at least 9 pm;
• the employee must not be working their usual working hours; and
• either public transport has ceased by the time the employee finishes work or it is unreasonable to expect the employee to use it.

There is no statutory definition of what amounts to unreasonable expectation and therefore it depends on the circumstances of each individual case.

HMRC has indicated that it will not accept travelling after dark being tired after a long day the reduced frequency of transport or heavy luggage as satisfying the test in isolation. More relevant is the journey...