PAYE tax relief on train and flight upgrades
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Newnoel
Posts: 378 Forumite
in Cutting tax
Interesting thread on Headforpoints.com, which seems to suggest that a PAYE taxpayer can claim tax relief at their marginal rate for upgrades that they personally pay for, whilst travelling off site for business:
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Comments
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Love this bit:
At the end of the day, HMRC does not ask to see receipts for the tax relief you are claiming so it would only come up for discussion if they chose to investigate your return.
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The article starts from the wrong assumption. Most expenses incurred by an employee have to be incurred wholly, exclusively and necessarily for the purposes of the employment. Travel only needs to pass the necessary test: see https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim31811
This does not help for upgrades. If the employer does not think they are necessary, HMRC will not be convinced either.
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Jeremy535897 said:This does not help for upgrades. If the employer does not think they are necessary, HMRC will not be convinced either.
https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim31633
https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim31835
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I don't agree. There is no problem in an employee claiming a deduction for first class travel (ignoring the unduly lavish point) necessarily incurred. Nor is this impacted by the fact that a general taxable allowance for travel is paid that would not cover that full cost. What the original question deals with is where the necessary travel has been paid for by the employer, and the employee chooses to upgrade out of his own pocket. It is a fine distinction, but it is there.1
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