Tax on Reimbursed Interview Travel: How Mean Can HMRC Get?

When an employer reimburses an employee’s travel costs for interviews, promotion boards, or grievance panels, the payment is subject to both income tax and National Insurance.

HMRC considers these meetings as personal rather than business travel, meaning they do not qualify for tax relief. This rule can seem harsh, particularly when employees incur expenses for work-related career progression.

What Travel Costs Are Taxed?

The rule applies to any travel expenses reimbursed by an employer for:

• Job interviews – Whether within the same organisation or externally.
• Promotion boards – When applying for a higher position within the company.
• Grievance panels – Attending a formal complaint or disciplinary hearing.

Since HMRC does not classify these as official business travel, any reimbursement is treated as additional taxable income.

The Impact on Employees

For employees, this means that any reimbursed travel expenses could reduce take-home pay once tax and National Insurance deductions apply.

For example, if an employer reimburses £100 for travel costs, an employee may receive less than expected after deductions. Employers should be clear about this tax implication when offering reimbursements.

Alternatives to Consider:

• Employees may pay for travel personally and claim relief where applicable.
• Employers can explore alternative support methods, such as covering interview costs through tax-free allowances.

Understanding the tax on reimbursed interview travel helps employees and employers make informed financial decisions.

How We Can Help

Navigating HMRC’s tax rules can be complex. At Lewis Brownlee, we help employers and employees understand tax liabilities and possible solutions. So, if you are in any doubt, please know that expert guidance is at hand. As leaders in the field of tax, we can easily demystify the complexities and ensure that your affairs are accurate. So, when you’re ready, we’re ready. Take us up on one of our free introductory meetings today and find out how we can help!

If you need expert advice on employment-related tax matters, contact us today.