Late night travel expenses can be paid to employees without it resulting in a tax or NI bill who are asked to work later than usual and where it causes them problems getting home. However, working late as a director is deemed part and parcel and you are not ordered to stay late, which bodes the question is the tax system even-handed?
Being a Director doesn’t automatically make you an employee unless you have a service contract with your company. Even if you don’t but are active in the business, you still count as an employee with certain exceptions. The tax and NI position is more straightforward and all pay, expenses and benefits you receive count as employment income. This means the late night working travel exemption applies all directors.
The exemption applies for up to 60 journeys per year where 1) You are required to work until 9.00pm or later, 2) Working that late isn’t a regular requirement of your job, 3) Public transport has ceased or it’s not reasonable for you to use at that time and 4) The journey is made by taxi or similar private transport.