Difficulties tracking employees & increased revenue interest could leave employers vulnerable, there has been a significant increase in the number of employees who travel for business, according to 80% of respondents to a human resources (HR) director survey by Deloitte. There has also been a rise in interest by revenue authorities in how businesses manage their compliance obligations for business travellers.

Lars Crowley, tax principal at Deloitte, comments:

"Over 40% of respondents indicated that they have received an Inland Revenue (now HM Revenue & Customs - HMRC) enquiry into their short term business travellers (the phrase used to describe employees who travel on business as part of their day to day responsibilities), indicating this to be an area of particular HMRC interest. The focus on short term business travellers is not restricted to the UK, with evidence of similar interest from other taxing authorities. Deloitte has also witnessed a significant increase in clients facing such an enquiry.

"With increased Revenue interest in short term business travellers and the potential implications of failing to comply, not only from a financial perspective but also taking into account the negative publicity for the company, it is important that companies take responsibility to address the challenges that they face in respect of compliance for their short term business travellers.  If a company has at least one employee who travels overseas on business this may be of relevance to them," continues Crowley.

Many employers do not realise their tax and social security obligations with employees which travel as part of their job. Obligations will vary depending on a number of factors such as the country in which they are based, the duration of the visit and the location of the employer. See notes to editors for examples.

According to the survey, one of the two biggest challenges faced by HR directors is identifying (70%) and tracking (69%) their short term business travellers. Finding someone to take responsibility for the monitoring of short term business travellers is a problem for 42% of survey respondents, and is a responsibility which often falls between the tax or finance department and human resources.