HL Deb 30 October 1995 vol 566 cc137-8WA
Lord Chappie

asked Her Majesty's Government:

What studies have been made on the impact on employees of the taxation of expenses, and in particular on the impact on low-paid employees.

The Minister of State, Department of Social Security (Lord Mackay of Ardbrecknish)

None that I am aware of. An employee may claim a deduction for tax purposes from his remuneration for expenses he is necessarily obliged to incur travelling in the performance of his duties. He may also claim a deduction for any other expenses which are incurred wholely, exclusively and necessarily in the performance of his duties.

Lord Chappie

asked Her Majesty's Government:

Whether the Inland Revenue is seeking to treat as taxable all expenses for those employees who, due to the nature of their employment, have to spend more than 50 per cent, of their time at locations other than their normal office or branch; and

Whether the Inland Revenue wishes to treat as taxable all travel and subsistence expenses of employees who are temporarily required to work at another location for a period exceeding 12 months.

Lord Mackay of Arbrecknish

The general rule is that tax relief is not available for the normal costs of home to work travel. But if an employee travels to a temporary place of work, relief is available for the cost of the journey from home or from the normal place of work, whichever is the lower.

An employee who is temporarily transferred to work away from his normal place of work can get relief for the cost of travel and subsistence for up to 12 months.