Hybrid working and the costs of commuting

Hybrid working patterns are here to stay and so to some extent is the cost of the commute. Subject to exceptions ordinary commuting expenses are currently not an allowable deduction from earnings for income tax and class 1 NICs purposes. For most employees on permanent employment contracts who only require attendance on a temporary basis under a hybrid working arrangement ITEPA 2003 s 339 will prevent the employee qualifying for a deduction for their travel expenses. However many European countries allow deductions in some form from taxable income for home to work travel. The OTS is currently conducting a review of the emerging trends and tax implications of hybrid and distance working. Its call for evidence includes a consideration of the income tax and social security implications of employee expenses and allowances. Is it time to consider the introduction of a commuting allowance and...