20 |
another employment at the place of departure and (c) that the place of departure or destination or both are outside the UK. 120 |
The reason for the provision is, once again, the limitations of section 337; travel from one employment to another could not be said to be ‘in the performance of the duties’ of either. This rule applies to journeys both from and to the UK but the employment121 must not be such as to give rise to earnings taxed on a remittance basis.122 Again, apportionment is authorised if there is more than one purpose.123 |
13A.3.2A Other Deductions: Reimbursed Expenses and Corresponding Payments |
It is important to determine the nature of the rules in this area of law, sections 370–376. They are not concerned to allow an employee to deduct certain costs of travel, accommodation and subsistence. Rather they apply where an employer has provided such facilities, so that the sum concerned is brought into charge as a benefit, eg under part 3 chapter 10; the rules then allow the employee to deduct the amount of the included benefit. The same analysis and result apply where the employee pays the amount and is then reimbursed by the employer; here the reimbursement would otherwise come within chapter 3, part 3. So while the sections appear to be—and are—framed in terms of deductions they are limited to deductions of amounts that first have to be ‘included’. |
These rules also mean that where these costs are borne by the employee and not by the employer, then no deduction can be obtained. This makes the employer the effective regulator of what is and what is not allowed. Other systems do not have such restrictions and find them bizarre. The premise that the employee can negotiate a favourable structure for the arrangement is completely false when dealing for example with the French bureaucracy. |
|
(a) Employee’s Travel duties performed abroad section 370 |
The scope of section 370 is similar to—though
not identical with—sections 340 and 341. In broad terms section
370 allows for the non-taxation of sums ‘included’ for employees’
travel in three situations the last of which is confined to vessels. These
rules are confined to tax under ITEPA sections 15 or 21, ie not the remittance
basis. The sums may be included because the employer provides the facilities,
eg pays for the ticket or reimburses the employee |