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EIM35030 | Travelling expenses: Non-resident and qualifying new resident employees working in the United Kingdom: travel between the home country and the United Kingdom

From HM Revenue & Customs · Employment Income Manual

Sections 373 to 375 ITEPA 2003

Provided all of the conditions below are satisfied, a deduction from earnings is allowable in respect of the cost of a non-UK resident or a qualifying new resident employee's journeys:

  • from a country outside the United Kingdom in which the employee normally lives at the time the journey is made, to any place in the United Kingdom where duties are performed (see below) and

  • returning there after performing his or her duties in the United Kingdom.

The conditions are as follows:

  • the employee who is non-UK resident or a qualifying new resident in the United Kingdom:

    • receives earnings from an employment for duties performed in the United Kingdom and

    • an amount is included in the earnings in respect of the provision of travel facilities for a journey made by the employee or the reimbursement of expenses incurred by the employee on such a journey

  • the earnings are charged on receipt under section 15 ITEPA 2003

  • the journey ends within five years of the employee's qualifying arrival in the United Kingdom (see EIM35060).

Unlimited number of journeys

There is no limit to the number of qualifying journeys that can be made. The employee's journey home can be made for any purpose provided it is made after performing the duties in the United Kingdom.

Journeys having dual purpose

An employee's journey to the United Kingdom may be made partly in order to perform the duties of the employment and partly for some other purpose. If so, limit the deduction to the amount properly attributable to the business purpose.

Journeys to or from a place in the United Kingdom

The requirement that the journey must be to a place in the United Kingdom in order to perform duties of the employment should be interpreted broadly. Travel to the place where the employee lives in the United Kingdom whilst performing the duties will qualify.