Clause 58 - Mileage allowances: nil liability notices
Finance Bill
11:00 am
Mr James Clappison (Hertsmere, Conservative)
The clause deals with dispensations granted by Inland Revenue. At present, employers may have dispensations for business travel and expenses. These are rulings by Inland Revenue that certain travel cost reimbursements are not taxable benefits. Employers then know exactly what tax position applies.
The clause will terminate all dispensations in force with effect from the next tax year, coinciding with the introduction of new mileage allowances. Will the Financial Secretary explain the position regarding reimbursements previously covered by dispensations? Will they become taxable benefits in the next financial year?