Payments by the employer for taxis to take employees home late or at night are exempt from tax if:
- the failure of car sharing arrangements conditions are satisfied (see below); or
- all 4 late night working conditions are satisfied; and
- the number of such journeys for which a taxi has been provided for that employee in the tax year is no more than 60.
There are 4 late working conditions, all of which must be satisfied.
- The employee is required to work later than usual and until at least 9pm.
- This occurs irregularly.
- By the time the employee ceases work, either:
- public transport has ceased, or
- it would not be reasonable to expect the employee to use public transport.
- The transport is by taxi or similar road transport – this condition is not contentious and is not referred to again in this guidance.
The 60 journeys is a single limit that applies to late night journeys and failure of car sharing arrangements together. This means that journeys under both headings must be added together when working out whether or not the 60 journeys limit has been reached.
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