SE31820 - Travel expenses: general - accommodation and subsistence - other incidental costs
Travel costs can include other incidental costs that form an
integral part of the cost of the business journey. This could
include toll fees, congestion charges, vehicle hire charges or car
parking.
Some expenditure that an employee might incur while making a
business journey is not expenditure attributable to that journey
and so is not deductible. This will include, for example, private
telephone calls, newspapers and laundry. However, if the employer
pays an amount for such personal incidental expenses there is a
specific statutory exemption that can apply, see
SE02700.
No deduction is due for costs arising as a result of the
business travel that stem from the personal circumstances of the
employee. For example, no deduction is due for the cost of a baby
sitter that the employee may need to pay while away from home.
Where an employee makes a business journey by car for years
up to and including 2001/02 they can calculate the cost of that
journey by using the Inland Revenue's authorised mileage rates, see
SE31860.
From 2002/03 onwards where relief for business travel using
an employee's own vehicle or bicycle is given at statutory mileage
allowance relief rates and not for actual costs, see
SE31200 onwards, a distinction must be
drawn between costs that are incurred in connection with the use of
that vehicle and other costs of business travel.
No relief is permitted for actual costs that are incurred in
connection with the use of that vehicle. This might include petrol,
oil, servicing, repairs, car hire charges and other costs of using
that vehicle. All of these costs are replaced by the statutory
rate, see
SE31240.
Relief is still permitted for the actual cost of other
expenses resulting from the business travel. These are expenses
that would be incurred regardless of the mode of travel or that are
not specific to the particular vehicle that is being used. This
might include toll fees, congestion charges or car parking.
