[EIM16067] Vouchers and credit tokens: transport vouchers: travel cards: examples
For information on transport vouchers generally see EIM16060. For details regarding the tax treatment of travel cards see EIM16065.
An employee is required to make a business journey from his workplace to visit a client and return to his workplace. The employee purchases a return train ticket at a cost of £10. Subsequently the employee submits a claim for expenses and is reimbursed £10 by his employer. The £10 is an expenses payment taxable under Section 70 ITEPA (EIM21600) but as the employee is entitled to a deduction under Section 362 (EIM16170) for £10, no charge arises to tax or NICs.