It may sometimes be necessary for an employee to live near his or her work or to live in a particular location. As a result the employee may incur extra living expenses over the amount that he or she may have incurred if they were free to live where they want.
If the cost of travel to that workplace is deductible under
Section 337 to 340 ITEPA 2003 then the deductible expenses will
include subsistence and accommodation costs that are attributable
to that travel, see
EIM31815. The circumstances in which
travelling expenses may be deducted are explained in the
instructions beginning at
Otherwise the extra living expense incurred is not deductible under Section 336 ITEPA 2003. The expense is not incurred in the performance of the duties of the employment.
There are several decided cases in which a deduction was refused for extra expenses of this kind.
|Bolam v Barlow||31TC136||Water board employee|
|Collis v Hoare||31TC173||Admiralty employee|
|McKie v Warner||40TC65||Company director|
|Elderkin v Hindmarsh||60TC651||Pipe inspector|