t: 01633 240080,  f: 01633 240081

24 Bridge Street, Newport NP20 4SF

Late night taxis for employees

Source: HM Revenue & Customs | | 25/09/2018

There is no specific requirement for employers to provide employees with transport home. Nevertheless, an employer has a duty of care to their employees, which means that they should take all steps that are reasonably possible to ensure their health, safety and wellbeing.

Ensuring that an employee gets home safely during unsocial working hours could fall within the employers 'duty of care'. Often in these situations an employer will pay for a late night taxi for an employee to travel home from work. This can also happen where there is a breakdown in a car sharing arrangement.

There is usually a taxable benefit where an employer provides free transport or pays for transport for an employee’s journey between home and a permanent workplace. However, there is a special tax exemption available where employees are required to work late 'occasionally'.

The exemption applies only where the following conditions are satisfied:

  • The employee is required to work later than usual and until 9pm or later.
  • The occasions are irregular.
  • By the time the employee ceases work, either public transport has stopped, or it would not be reasonable to expect the employee to use public transport.
  • The transport is by taxi, hire car or similar private road transport.

There is also an overall maximum allowance of 60 qualifying journeys in a tax year. No tax relief is available where employees work late by choice, where late working is a regular feature of employment or where the employer does not reimburse travel expenses.



 

Latest News

  • Anti-money laundering rules

    17/10/2018 - More...

    The Money Laundering Regulations (MLR) are designed to protect the UK financial system and put in place certain controls to prevent businesses being used for money laundering by

  • New style £50 note to be introduced

    17/10/2018 - More...

    In a joint statement issued by HM Treasury and the Bank of England it had been confirmed that the £50 note is to continue to be part of the UK currency. The new £50 note will be

  • Tax to pay if you exceed the annual pensions allowance

    17/10/2018 - More...

    The annual allowance for tax relief on pensions has been fixed at the current level of £40,000 since 6 April 2014. The previous allowance was £50,000 and prior to 6 April 2011, the

Newsletter

With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!

» Sign up for the newsletter
» Login


Copyright © 2018 Haasco Limited (Company registration 7030921). Registered to carry on audit work in the UK and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales (Firm C003118150). Indemnity insurer - Axis Speciality Europe SE (Policy 374997016)

Cookie Policy | Privacy Policy