HMRC have issued draft guidance to clarify those circumstances when an employee's journey home from work late at night, paid for by their employer may be exempt from a tax and NICs charge.

This benefit is exempt from charge, as long as:

• all the late working conditions are satisfied; and
• the number of occasions in the tax year on which a taxi is provided is no more than 60.

HMRC's draft guidance, which is available at
http://www.hmrc.gov.uk/employers/guidance-consultation.pdf, attempts to clarify the above conditions. Although not a formal consultation, HMRC are inviting views on the draft guidance; and the guidance was available for comment for 5 weeks from 8 August 2007.

As you are aware ordinary commuting journeys between a permanent workplace and home are private journeys for tax and National Insurance purposes and so if the cost of that journey is met by an employer it is a benefit-in-kind and tax and National Insurance Contributions (NICs) will be due.