HMRC says they will demand tax on any expenses – increasing the bill for companies
Failing to get back to work in reasonable time could lead to disciplinary action. Disputes between stranded employees and employers are beginning to flare up over what are allowable ‘business’ expenses incurred by employees in their efforts to get back to the UK warns EMW Picton Howell, the commercial law firm.
Comments Louise Holder of EMW Picton Howell’s employment team: “Unless the employer has expressly agreed that they will cover the repatriation costs, the employer is under no obligation to reimburse the employee.” “Employees who have taken on some onerous travel arrangements to hurry back to the office are inclined to think that they will be repaid for their ‘professionalism’, but unfortunately that will be entirely at their employer’s discretion.”
“Some employees are being faced with some pretty high bills especially as there have been incidences where hotels and taxis have inflated prices to make the most of the crisis.” Louise Holder gives the example of one employee who has built up a £500 hotel telephone bill. EMW Picton Howell points out that HMRC will demand tax and National Insurance on any expenses if the individual was on holiday whilst stranded.
Adds Louise Holder: “It is a real shame that HMRC can’t waive its rules for this crisis and insists on increasing the expense bills for companies who want to help repatriate their staff.” EMW Picton Howell says that diligent employees thinking of taking action that might result in extra travel costs in order to get back to work will need to raise the question with their employers whilst they are still away. Comments Louise Holder: “Whether the employer will agree to meet the employee’s costs or not will depend on factors, such as, how important it is for that employee to be back in the office to attend meetings etc. This will not apply to all employees.”
EMW Picton Howell also warns that employees who attempted to take advantage of the travel chaos to prolong their holiday could be assessed by their employers on whether they have made ‘reasonable’ efforts to get back to work. Explains Louise Holder: “Employers are allowed to ask for an account of the efforts they made to get back to work. If it transpires that the employee has chosen to sit by the pool whilst ferries or flights were available then that isn’t going to be looked on favourably.”
“We would advise employers to show some kind of understanding to their employees by being flexible with the way they resolve the issue, but where there are signs of abuse there is the potential for disciplinary action.”
Human Resources news brought to you by theHRDIRECTOR – the only independent strategic HR publication.
