You can pay a cash allowance to an employee for travel between home and work. This is tax free if it reimburses their additional transport costs and they:
- are working outside their normal hours of work, such as overtime, shift or weekend work
- need to carry work related tools or equipment, for example, they might usually take the bus but on a particular day they need to carry a large toolbox
- are travelling to fulfil a statutory obligation
- have a temporary change in workplace
- have some other condition of their job
- cannot access adequate public transport.
The tax free amount is the actual cost of travelling between home and work, less the employees usual travel costs. This applies to all circumstances except the lack of adequate public transport.