SE31810 - Travel expenses: general - introduction - the tests to be passed

The Schedule E expenses rule is very restrictive. All of the tests imposed by Section 198(1) ICTA 1988 must be passed before a deduction is obtained. The tests are stringent and exacting, see SE31636. It is important that you get all of the facts before you make a decision, see SE31635.

The tests that apply to travel expenses are

• the expense must be one that each and every holder of that office or employment would have to incur, see SE31640
• the expense must be necessarily incurred, see SE31645
• the expense must be incurred in the performance of the duties of the office or employment, see SE31650 (this requirement has been relaxed under the new travel rules that apply from 1998/99 onward, see SE32010)
• the expense must be incurred and defrayed out of the emoluments of that office or employment, see SE31655.

For 2002/03 onwards employees who use their own vehicle or bicycle for business travel no longer get a deduction for their actual costs but get mileage allowance relief at a fixed rate, see SE31200 onwards.