Revenue comes down hard on cab journeys

Companies are facing the threat of paying extra tax and national insurance on
cab journeys to and from work, following the release of a new guidance note
issued by HM Revenue & Customs.

The note said that ordinary commuting journeys between a ‘permanent workplace
and home are private journeys for tax and
National Insurance (NI)’ meaning that
if the cost of that journey is met by your employer it is a benefit in kind and
tax and ‘NI Contributions (NICs) will be due’.

Brian Lovie, director of employment tax at
PKF accountants, said HMRC had put a new
interpretation on existing rules: ‘What it has very cleverly done is put a new
interpretation on them. This will render it almost impossible for anyone ever to
get a taxi home without it being taxed.’

Further reading:

‘Double cab’ drivers face tax threat

ICAS in bizarre new marketing ‘drive’

Metrocab sold to European group

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