'This new basis is sensible and very welcome,' said Peter Minchinton, automotive group manager at Ernst & Young. Earlier this month the Inland Revenue published a booklet - 'Employee Travel - A Tax and NICs Guide for Employers' - which explains in detail the new tax and NI rules. All employers which have 50 or more employees will receive an advance copy and leaflets for employees - IR161 'Tax Relief for Employees Business Travel' - are also available.
This week Minchinton urged fleet chiefs not to be put off by the 116-page guide. He said: 'That could be a serious mistake. There are a number of areas to which employers should pay urgent attention. They need to review their policy for reimbursing travel and subsistence - do they want to move to a full cost basis? They then need to consider their current dispensation.'