The HM Revenue and Customs has found abuses of the tax concession on the daily travelling allowance paid to operatives using personal transport to and from jobs over 15 miles from their depot.

The current concession is as follows: the first £1 of the allowance paid each day is subject to tax and National Insurance contributions. The remainder may be paid without deduction to operatives incurring the cost of travel. This concession does not apply to those sharing transport and not incurring the travel costs: their payments will be subject to tax and National Insurance.

HM Revenue and Customs has also stated that if the costs of travel are split between occupants of a vehicle, only the owner/driver is entitled to receive the concession on the daily travel allowance.

Source

Electrical and Mechanical Contractor