HM Revenue & Customs is clamping down on employees’ excessive use of taxis when working after normal hours.

Regularly taking taxis could be considered a benefit and therefore taxable, tax consultants including PwC have warned. The practice would be tax-exempt if it took place later than 9pm, was not a regular occurrence and if public transport had stopped running for part of the normal journey.

Many firms are being caught off guard, wrongly believing that a taxi for a female employee is not a taxable benefit because there are fears for the woman’s safety at night. In general, travel between home and work is considered a private journey.

Revenue & Customs has put information about the issue on its website. See www.hmrc.gov.uk/employers/guidance-consultation.pdf

Source

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