Section 248 ITEPA 2003 exempts from tax the cost of some journeys home from work paid for or provided by an employer in particular circumstances:
The exemption in section 248 cannot apply to any more than 60 journeys in a tax year. This is a single limit that applies to late night journeys and failure of car sharing arrangements together.
See EIM10220 for what to do if the number of journeys that would otherwise meet the terms of the exemption exceeds 60.
The exemption for late night journeys paid for or provided by the employer applies if all the following conditions are met:
For more information concerning the exemption for late night taxis see EIM21831.
The exemption for journeys paid for or provided by the employer applies if the following conditions are met:
Circumstances are unforeseen only if the car sharing
arrangements fail after the employees concerned arrive at work. For
instance, if the car breaks down at work so it is not capable of
transporting the employees home, or if the car driver is called
home or to another location during the working day, leaving the
employees who share the car without their transport home. On the
other hand, if it is apparent before the employees leave home for
work that the normal car sharing arrangements are not available for
a day, the unavailability can be foreseen and alternative
arrangements may be made to travel to work. See
EIM10220 for what to do if the terms of
the exemption are not met.
For the exemption from tax of journeys on works buses see EIM21850 and for subsidised journeys on public buses see EIM21855.