EIM31810 - Travel expenses: general:
introduction: the tests to be passed
Sections 329, 333, 337(1)(a) and 338(1)(a) ITEPA 2003All
deductions for employees’ expenses are subject to a number of
general rules. These are:
- the only deductions that can be made are
those that are permitted by statute, see Part 5 ITEPA 2003
- the amount to be deducted cannot exceed
the amount of earnings from which it is to be deducted, see Section
329 ITEPA 2003
- a deduction can only be given to the
extent that an expense has actually been incurred or an amount in
respect of an expense is included in earnings, see examples at
EIM31631 onwards and Section 333 ITEPA
2003
- a deduction is only permitted for expenses
the employee is obliged to meet as holder of the employment, see
EIM31640.
Employees who use their own vehicle or bicycle for business
travel do not get a deduction for their actual costs but get
mileage allowance relief at a fixed rate, see
EIM31200 onwards.
