Chapter 3: Employment Income

Question 3.1: Qualifying travelling cost

Nida is an accountant. She often travels to meetings at the firm’s offices in Glasgow, returning
to her office in Leeds after the meetings. What tax relief is available for Nida’s travel costs?
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Question 3.2: Qualifying travelling cost
Johan is based in an office in Manchester City Centre. One day he is required to attend an 8.00
am meeting with a client whose premises are around the corner from his office. Johan travels
from home directly to the meeting. What tax relief is available for Johan’s travel costs?
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Question 3.3: Qualifying travelling cost
Maxwell works for a bank at its Newcastle City Center Branch. Maxwell is sent to work full-time
at another branch in Morpeth for 20 months, at the end of which he will return to the
Newcastle branch. Morpeth is about 20 miles north of Newcastle. What tax relief is available
for Maxwell’s travel costs?
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Question 3.4: Statutory approved mileage allowance
Sally uses her own car for business travel. During 2019-20, Sally drove 15,400 miles in the
performance of her duties. Sally’s employer paid her a mileage allowance. How is the mileage
allowance treated for tax purposes assuming that the rate paid is:

(a) 40p a mile?

(b) 25p a mile?

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Question 3.5: Statutory approved mileage allowance

Danni is employed by KM plc. She uses her own car for business purposes and is reimbursed
35p per mile by KM plc. In 2019-20, Danni travelled 15,000 miles on business. What is the
employment income consequence of the reimbursement for business mileage?

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