Autumn Statement HMRC Targets Abusive Travel Schemes

Mark Groom, tax partner at Deloitte, comments on the Government's proposal to remove tax relief on business expenses when claimed in conjunction with salary sacrifice schemes.

"When the new statutory exemption for business expenses is introduced in April 2016, expenses claimed in conjunction with a salary sacrifice scheme will be excluded from the exemption. This measure is aimed primarily at preventing the loss of National Insurance which is not paid on reimbursed travel expenses.

"Employees can claim tax relief for business travel expenses under Self-Assessment, so there is normally no tax lost from such arrangements. But employees cannot claim relief for NI under Self-Assessment.