Government launches review of taxation on travel and subsistence expenses

The government has launched the first stage of its review into the taxation of travel and subsistence expenses, which it announced in the 2014 Budget in March.


The consultation follows the Office of Tax Simplification’s (OTS) reportReview of employee benefits and expenses: second report, which was published in January 2014.

The OTS made a range of recommendations for how the tax treatment of travel and subsistence expenses could be simplified or improved. It also proposed that the whole system of travel expenses be reviewed against changing working patterns.

The government intends to conduct the consultation in stages. The first stage, which will run from July 2014 to October 2014, will explore:

  • The circumstances in which employers pay travel and subsistence expenses (whether tax relievable or not).
  • How tax influences these decisions.
  • The other factors which influence commercial decision making in this area.

The government intends to report on this stage of the review at the Autumn Statement 2014.

The second stage of the review, which will run from winter 2014 to spring 2015, will establish a working group to assist in producing a new set of principles upon which the rules of a new travel and subsistence tax regime will be based.

The government intends to report on this stage of the review at Budget 2015.

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John Whiting, tax director of the OTS, will discuss how tax and legislation changes are impacting benefits, in the closing keynote session on the first day of Employee Benefits Live 2014 on 24 September.

Register here to attend Employee Benefits Live for free