When an employer provides and pays for a taxi to take an employee home, this is a taxable benefit unless it subject to the Late-Night Taxi exemption.
To qualify for the Late-Night Taxi exemption the following stipulations must be met:
- The number of journeys total no more than sixty in a year.
- The four late-night working conditions are satisfied:
- the employee is required to work later than usual and until at least 9pm;
- the late-night working occurs irregularly;
- by the time the employee finishes work, either public transport has ceased or it would not be reasonable to expect the employee to use it; and
- the transport provided is by taxi or equivalent road transport.
The key word in the stipulations is ‘irregular’ which means not following a regular or established pattern.
An employee who works later than usual and until at least 9pm every Friday or on the last Friday of each month, therefore, is not working later than usual irregularly. Neither is an employee that works later than usual and until 9pm on one variable day each week.
However, should a particular project or assignment necessitate an employee to work later than usual every day beyond 9pm for three weeks, this would qualify as irregular.
If you have any questions or would like any further information on the Late-Night Taxi exemption, please email us at tax@cooperfaure.co.uk.