Introduction

In general, costs for travel between an employee’s permanent place of work and home are subject to tax and national insurance contributions (NIC). See the Treatment of commuting expenses guidance note for details.

There is an exemption from tax and NIC where an employer provides transport home, reimburses the cost or pays for it directly. This applies in either of two situations for journeys to get home from work (not to get into work):

1. •

   late night working

2. •

   failure of car sharing arrangements

ITEPA 2003, s 248

These exemptions apply only where:

1. •

   the journey is from work to home

2. •

   the claim is made no more than 60 times in a tax year (this is a combined total of late night working and failed car sharing arrangements)

ITEPA 2003, s 248(1)