Chapter 3: Employment Income

Question 3.1-Answer
Relief is available for the full cost of these journeys as the travel is undertaken in the
performance of Nida’s duties.
Question 3.2-Answer
Since the journey is substantially the same as Johan’s ordinary journey to work, tax relief is not
available.
Question 3.3-Answer
Although Maxwell is spending all of his time at the Morpeth branch it will not be treated as his
normal work place because his period of attendance will be less than 24 months. Thus Maxwell
can claim relief in full for the costs of travel from his home to the Morpeth branch.
Question 3.4-Answer
(a)
Mileage allowance received (15,400 x 40p) £6,160
Less tax free (10,000 x 45p) + (5,400 x 25p) (5,850)
Taxable benefit 310
(b)
Mileage allowance received (15,400 x 25p) £3,850
Less tax free (10,000 x 45p) + (5,400 x 25p) (5,850)
Allowable deduction (2,000)
Question 3.5-Answer
Mileage allowance received (15,000 x 35p) £5,250
Less tax free (10,000 x 45p) + (5,000 x 25p) (5,750)
Allowable deduction (500)

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