TCTM04213 - Income: Employment income rules - Specific payments and benefits in kind excluded from employment income for tax credit purposes: Travelling and subsistence allowances paid during public transport disruption

The Tax Credits (Definition and Calculation of Income) Regulations 2002,Reg.4 (4), Table 1 (Item 13).

Travelling and subsistence allowances paid to or on behalf of the claimant by their employer as a result of public transport being disrupted by strike action (and falling within section 245 ITEPA)

This is the income tax exemption (see Employment Income Manual EIM10100 and section 245 ITEPA)

Note: With effect from 6 April 2017 the way in which many salary sacrifice and benefit in kind schemes are taxed will change, which means that some tax credit claimants will see an increase in their taxable income.

For the purposes of tax credits, where one of these schemes is in operation the taxable income figure should be used.