Will Employers Need To Review How They Reimburse Travelling Workers For Mileage And Expenses?

Will Employers Need To Review How They Reimburse Travelling Workers For Mileage And Expenses?

By Jo Downend
15 September 2015

Our Sales and Marketing Director, Deborah Saunby, reflects on the new ECJ ruling:

"The new ECJ ruling on travel from home to a worker’s first appointment is fascinating, and one that will certainly be welcomed by employees that spend their days on the road. For employers however, it will mean they will have to potentially reassess how they reimburse travelling workers for mileage and expenses. 

Most companies, in our experience, don’t generally allow employees to claim mileage for travel from home to first appointments, but as this travel time is now classed as part of an employees working day it will open up the question of whether this travel should be expensed.

Having said that, it somewhat depends on whether the employee’s home is also classed as their base, or regular place of work. If it’s not, then travel from home to work is considered to be commuting – and subsequently any meetings that are nearby could still be considered as commuting and therefore employees would not be able to claim for that mileage.

My advice would be to pay close attention to any updates and guidance from the ECJ and HMRC – what you don’t want to happen is in six months be told that you owe backdated expenses for all of your employees travel to first appointments. In the coming weeks we’ll be seeking clarification and will be updating our customers accordingly."

 

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