Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the cost of taxi trips for care home staff that were paid for by the Infection Control Grant are treated by HMRC as a benefit in kind for employees and so are taxable; and if he will instruct HMRC to publish updated guidance on that matter.
Where the employer funds the provision or reimbursement of costs of transport using the Infection Control Grant, the same conditions apply.
Where the conditions are not met, the provision of transport or reimbursement of the costs of transport to employees for travel between the employee’s home and workplace will be taxable.
HMRC updated its guidance on paying or refunding transport costs during coronavirus (COVID-19) on 23 March 2021: https://www.gov.uk/guidance/how-to-treat-certain-expenses-and-benefits-provided-to-employees-during-coronavirus-covid-19#paying-or-refunding-transport-costs