SE62630 - Tax treatment of engineering design employees: guidelines issued by the Federation of Engineering Design Companies - taxation

6. Taxation

Payments can only be made without deduction of tax under PAYE to the extent that they can be covered by deductions due under Section 198(1) Income and Corporation Taxes Act 1988. Such deductions, however, can only be made where the expenses are incurred in the performance of the duties of the employment. The cost of travelling between home and the employee’s normal place of employment does not qualify for relief.