Due to the current pandemic, travel allowances and company cars, generally speaking, no longer make any sense. Should these benefits still be provided? If so, while the employee is receiving the benefit but is on lockdown, how should this be dealt with from a tax perspective? There is potentially a detriment to the employee’s taxable income, and a cost saving measure for the employer if smart steps are taken.
If your employer provides a travel allowance or company car, but you are on lockdown and are not able to make use of the benefit as is required, this may create an added tax burden for you. Are you in for an unexpected tax liability due to this?