IRD has released a draft statement (ED0217) for comment and consultation that details their current thinking on when employer provided travel from home to a distant workplace is taxable. This statement is not yet final but clarifies IRD's current view. It's timely to review your arrangements
Inland Revenue's approach
"Employer-provided travel from home to a distant workplace will be taxable (and subject to FBT or income tax) unless one of the following applies:
- the travel is one-off or very occasional (de minimis applies);
- the travel relates to a temporary posting or secondment (up to two years);
- the employee also genuinely works at a hometown workplace;
- the employee works from home on specified days (home being their place of work on those days, and the travel relates to one of those days)."
We will update you when the operational statement is finalised.