A reimbursement of expenditure actually incurred by an employee
in travelling between two or more places of work is not
“earnings” within Section 62 ITEPA 2003. This is
because the expenditure would be allowable under Section 337 if the
employee had paid it out of their remuneration, as he or she would
be travelling in the performance of their duties (see Taylor v
Provan (49TC12)).
To establish what is a place of work, the employee has to
show that he or she performs substantive duties at the place in
question. If the employee claims that their home is a place of
work, see
EIM10030.
Bear in mind though that, unless the employee is in lower
paid employment,
all expenses payments are treated as earnings by
Section 72 ITEPA 2003, subject to any deduction under Section 336,
337 or 338. See
EIM10000 and
EIM20601..
From 6 April 2002, mileage payments which
employers make to employees who use their own vehicle or bicycle
for travel between two places of work are not chargeable to tax if
they do not exceed the appropriate approved mileage allowance
payment (AMAP) limit. Payments that exceed the AMAP limit will be
taxed to the extent that they exceed the limit. Full guidance on
the operation of the AMAP scheme is at
EIM31200 onwards.
