Revenue comes down hard on cab journeys
Tax and national insurance due on cab journeys to and from work
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.’