SE62645 - Tax treatment of engineering design employees: guidelines issued by the Federation of Engineering Design Companies - taxation of travelling expenses continued

c. Two examples have been quoted above to illustrate the extremes likely to be met, but in practice many cases will fall in the broad area between these extremes and employers will need to make a judgement based on the information available to them in deciding whether tax should be deducted at a particular juncture from payments of travelling and subsistence allowances. Employers will need to consider the employee’s past pattern of employment, as well as the nature of his current contract, and in particular it should be noted that where an employee is specifically recruited to work at a particular site, he must receive his expenses allowance under deduction of tax from the very beginning.