HMRC clarifies employee taxi benefits
January 1, 2008
A document outlining the benefits for employees who use taxis paid for by their employers for a journey from work to home has been published by HM Revenue and Customs (HMRC).
HMRC said that there are four late working conditions, all of which must be satisfied:
• the employee is required to work later than usual and until at least 9pm;
• this occurs irregularly;
• by the time the employee ceases work – either public transport has ceased, or it would not be reasonable to expect the employee to use public transport;
• the transport is by taxi or similar road transport.
In its document HMRC said that, as with any benefit or expense provision, employers who provide late night taxis home for their staff must be able to show that they have treated the provision correctly for the purposes of tax and NICs.
HMRC said that it is not sufficient for an employer to have a published protocol setting out the circumstances in which an employee can have access to the use of a late night taxi if nothing is done to ensure that is applied correctly.
Copies of HMRC’s document about late night taxis can be downloaded from: www.hmrc.gov.uk/manuals/eimanual21831.htm
HM Revenue and Customs press release, January 8, 2007

