Nxt Manchester — Jan./Feb. 2009 - (Page 24)

Taxman Drives a Hard Bargain on Travel Expenses BUSINESS SERVICES Watch out! A Manchester tax expert has warned the tax authorities are accelerating their interest in travel expenses. Steve Bold, national executive partner at BTG Tax said there is a concern over employees working away from home. “We are seeing more detailed checks of travel expenses within PAYE inspections. The general travel rules allow only the cost of a journey to a temporary location but deciding on whether or not a location is a temporary one can be fraught with difficulties,” said Steve. Take this illustration for example: A person living in London finds work in Stockport. The fictional person’s new employer pays to put him up there from Monday to Friday. The employee has not disposed of his interest in his current property, so cannot claim relief under the relocation rules either for the cost of the travel or the accommodation. After three months, the person is seconded to a Warrington office on a 12-month assignment and claims travel from his temporary base in Stockport to the new workplace and back. “Despite the fact that the secondment is for less than 24 months, it is likely that HMRC will regard these costs as additional remuneration as the new location will not be treated as a new workplace for tax purposes,” said Steve. “When looking at such an arrangement, HMRC has stated that the whole journey from home must be considered, and as in this case, London to Stockport and London to Warrington are broadly the same both in time and cost, Warrington will not be regarded as a new workplace for tax purposes.” Steve said there are other instances when travel expenses may be denied. They include occasions where an employee spends 40 per cent of his or her time at a second location or where attendance is frequent or regular.

Table of Contents Feed for the Digital Edition of Nxt Manchester — Jan./Feb. 2009

Cover Contents Editor's Notes Nxt Challenge MediaCityUK 2009 - The Vision The Lowry Hotel Nxtbook Stateside Nxtbook Europe Colin's Spinning Jenny Puts Manchester on the New Media Map Personal Liability Shock in Store for Insolvent Directors Key Tips to Generate Web Site Revenue Economy: Business Rescue Taxman Drives a Hard Bargain on Travel Expenses Server-Hosting Sector Goes Green Don't Let the Credit Crunch Affect Your Health The Changing Face of Manchester Salford University Appoints MediaCity Director Century Turns Real Nxt News Events

Nxt Manchester — Jan./Feb. 2009

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