½Û×ÓÊÓƵ

A deduction from earnings is allowed for travel expenses if¹:

1. Ìý

   •ÌýÌýÌýÌý the employee is obliged to incur and pay them as holder of the employment, and

2. Ìý

   •ÌýÌýÌýÌý the expenses are necessarily incurred on travelling in the performance of the duties of employment

Travel expenses include subsistence costs attributable to the journey² (for more commentary on subsistence costs, see E4.724A).

However, no deduction is available if mileage allowance has been paid, or if mileage allowance relief is due³. For commentary on mileage allowance payments and mileage allowance relief, see E4.723A.

The key test here is that the travelling must be in the performance of the duties — not, for instance, to get to the place where the duties are carried out. This will often turn on the facts as to exactly what the duties of the employment are.

It is rare for home to work travel to be deductible under this rule. Perhaps the leading case on this point is Ricketts v Colquhoun⁴ (see E4.728B). The element of