Part 5Employment income: deductions allowed from earnings
Chapter 2Deductions for employee’s expenses
Travel expenses
F1340ATravel between linked employments
(1)
A deduction from earnings from an employment is allowed for travel expenses if conditions A to E are met.
(2)
Condition A is that the employee is obliged to incur and pay the expenses.
(3)
Condition B is that the travel—
(a)
takes place within the United Kingdom, and
(b)
is for the purpose of performing duties of the employment at the destination.
(4)
Condition C is that the employee has performed duties of another employment at the place of departure.
(5)
Condition D is that—
(a)
at least one of the employments is as a director of a company (“company X”), and
(b)
the other employment is also with a company (“company Y”) but not necessarily as a director of it.
(6)
Condition E is that the employee was appointed as a director of company X because company Y, or a company in the same group as company Y, has a shareholding or other financial interest in company X.
(7)
This section needs to be read with section 359 (disallowance of travel expenses: mileage allowances and reliefs).
(8)
In this section—
“director” has the same meaning as in the benefits code (see section 67), and
“group” means a company and its 51% subsidiaries.