SE62660 - Tax treatment of engineering design employees: guidelines issued by the Federation of Engineering Design Companies - taxation of travelling expenses continued

f. Where it has been decided that the travelling expenses have been incurred in circumstances which would entitle the employee to receive payment in full, a second test is then required in cases where a round sum allowance is paid instead of an exact reimbursement. The rate of payment of such an allowance must be reasonable in all the circumstances and not at such a high level that it constitutes additional remuneration.