On 23 September 2015, HMRC published a discussion paper on the taxation of travel and subsistence payments. Comments on the proposals contained therein are invited by 16 December 2015.

The proposals, which would appear to be broadly tax-neutral (and possibly even taxpayer- favourable in some cases) are based on the principle that, as under the current rules, tax relief should be given for business travel but not ordinary commuting. The proposals seek to clarify the rules and apply objective tests.

Journeys in the course of an employee’s performance of duties would continue to qualify for relief. Relief would also be available for journeys to any location other than an employee’s “main base” (to be nominated by the employee).

The discussion paper can be found here.