HMRC stands by tax relief decision
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HMRC HAS sought to clarify its position regarding claims for travel expenses relating to the Driver CPC, after it emerged last week that a driver had been refused tax relief because the training was not an “intrinsic part” of his job as a driver.
HMRC said drivers who are employed by a firm are entitled to tax relief only for expenses incurred “exclusively and necessarily in the performance of” their employment duties. It added: “The courts have confirmed that in most cases expenditure on training is not incurred ‘in the performance of’ an employee’s duties, but only to put them in a position to perform their duties and doesn’t therefore qualify for tax relief.” However the self-employed can claim a deduction for expenses “on maintaining or updating existing skills, knowledge or expertise”.