Travel & Subsistence – consultation to follow

Thu 04 Dec 2014

The Government have committed to a full public consultation on the framework for new travel and subsistence rules. The consultation on changes to the tax relief for travel and subsistence expenses is likely to affect all employers.

The Government recognises that the rules on travel and subsistence are complex and out of date. The present rules would benefit from more guidance but the real need is for proper simplification.

Therefore the OTS recommendations in respect of employee travel and subsistence expenses will be taken forward.  Since the rules were last updated there have been significant changes in the way that a modern workforce operates including the need to be mobile, or an increase in the number of employees who work at home, neither of which is properly catered for in the current system. Concerns were raised that some of the tax rules are encouraging tax planning and are distorting the labour market and working practices. Given the rate of change in working practices the Government has committed to start from first principles and produce a new set of rules that will work with modern day practices.

A full public consultation on the framework for new travel and subsistence rules is long overdue and will be welcomed amongst employers to fit in with today’s workforce travel patterns.

Travel and subsistence: long overdue review of analogue reliefs in the digital age #AS2014