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This discussion clarifies the tax treatment of travelling allowances in the UK. Generally, reimbursements for actual business travel expenses, supported by documentation and without a limit, are tax-exempt. However, if a travel allowance is a fixed amount and included in a standard deduction, or if reimbursements exceed the allowance received, it may be considered taxable.

RAKESH

RAKESH (Querist)

21 January 2021 Sir
Please comment on the taxability of the following;
Travelling allowance recieved on the basis of actual journey for the performance of the duty.
Eg: a field officer or employee claimed for re-imbursement of expenditure incurred for travelling and there is a maximum limit for such expenditure.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

21 January 2021 Traveling allowance already included in standard deduction hence it's taxable. Reimbursement of actual business traveling expenses with documentary evidence without any limit is exempt

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

21 January 2021 Travelling Allowances allowed to the extent actual expenditure made in travelling. Maximum limit is upto the amount of travelling allowances received

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