Revenue’s guide Part 05-01-06 setting out the tax treatment of reimbursing employees and office holders for travel and subsistence expenses has been updated to clarify when toll charges and expenses incurred when “e-working” part-time can be reimbursed by an employer tax-free.

Toll charges can be reimbursed tax free when the purpose of the journey is for business. Toll charges incurred by an individual travelling from home to work may not be reimbursed without deducting tax.

Where an individual “e-works” or works from home on a part-time basis, expenses incurred travelling between home and the place of work cannot be reimbursed tax-free. Subsistence expenses for periods spent in an individual’s home cannot be paid without the deduction of tax. Revenue also made a number of other clarifications in the Tax and Duty Manual which you can read in Revenue’s eBrief on here.