The Inland Revenue is refusing to allow companies and staff to offset travel and hotel costs caused by the recent rail chaos against their tax bills.
Its hardline stance was revealed this week after a request from Ernst & Young to widen an extra statutory concession which waives the rule that staff’s commuting costs paid for by an employer are a taxable benefit.
According to the letter of the law, this concession only currently applies to disruption resulting from industrial action.
E&Y argued the recent rail chaos was beyond ‘acceptable’ levels of disruption.
Frustrated commuters are pictured above with a Railtrack attendant at Euston last month.
But the Revenue argued that broadening the concession would be ‘a significant extension and would involve difficulties in terms of framing the qualifying conditions’.
E&Y’s Alistair Kendrick said: ‘Companies were up against it, needed their staff at work and now face a large tax bill. I’m sure the Revenue can come up with a workable solution.’
The websites of the protagonists are at www.ernsty.co.uk and www.inlandrevenue.gov.uk.
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