March 23, 2011 6:07 pm

Tax relief on late-night cabs to go

Employees will no longer be able to claim tax relief for cab fares home if they are working late, under measures announced in the Budget.

The “late night taxi” relief allowed employees to avoid paying income tax and National Insurance on infrequent taxi or minicab journeys paid for by their employer, if they were asked to work late.

The planned abolition of this relief, and 42 other allowances, was the result of a review of the UK’s complex tax system by the Office of Tax Simplification. Seven reliefs, including interest on National Savings Ordinary bank accounts and a payroll giving supplement, will be abolished in this year’s Finance Bill.

The government is to consult on the removal of 36 other reliefs, including an allowance on life assurance premiums paid by employers under employer-financed retirement benefit schemes.

The allowance for provision of meals for “cycle to work” days and tax relief on Angostura Bitters and Black Beer are also set to be abolished.

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