Income Tax (Earnings and Pensions) Act 2003 section 340

Travel between group employments

Section 340 allows a deduction from employment earnings for travel expenses when an employee who works for more than one company within the same corporate group travels between those group companies' workplaces.

• An employee may deduct travel expenses when travelling from a workplace of one group company to a workplace of another group company, provided they are obliged to incur and pay those expenses themselves.
• The travel must be for the purpose of performing employment duties at the destination, and the employee must have already performed duties of a different employment at the place of departure.
• A "group" for these purposes means a parent company and its 51% subsidiaries, and both employments must be with companies within the same group.
• No deduction is available under this section if a mileage allowance has been paid or mileage allowance relief is available for the same journey.