2 year rule - help me count

[Contreras]

So here's a question for everyone:

1. You have been travelling 50 miles from home to London every day for 23 months with no expectation that you will work beyond then.
2. You then stop, and start with a new client in Birmingham, which is your base.
3. You then have a meeting six months later on behalf of that client in London, and as per client policy, the train ticket is booked via their system / provider.
4. Are you then caught under the 40% rule and a BIK arises even though your employer has not paid for the travel? Does your Ltd complete the P11D for the ticket bought by the client?

Who foots the bill, and how, won't make any difference to whether it's a BiK or not. It would be a nice little loop hole if our clients could pay for holiday's and such without these being classed as BiK.

If your Ltd had itself bought the ticket, or if you had bought the ticket and claimed it back from your Ltd, would you include it on the P11D? The answer to that is debatable but it is also the answer to your question above.

HM Revenue & Customs: Travel - general

Business travel: you provide, pay for or reimburse
Definitions or restrictions

You cover the costs of an employee's business travel costs in one of the following ways:

• by directly providing the transport
• by paying a supplier through which your employee has arranged transport
• by reimbursing no more than the necessary costs of business travel

Business travel only covers the following two types of journey which include - where necessary - travel abroad:

• journeys forming part of an employee's employment duties - such as journeys between appointments by a service engineer or to external meetings
• journeys related to an employee's attendance at a temporary workplace

As well as including transport costs, the 'necessary costs of business travel' also include:

• subsistence costs, such as meals
• accommodation if the travel requires an overnight stay

What to report, what to pay

For employees earning at a rate of less than £8,500 per year, you have:

• no reporting requirements
• no tax or NICs to pay

For company directors or employees earning at a rate of £8,500 or more per year:

• report on form P11D unless you have a dispensation covering this item
• you have no tax or NICs to pay