There are new rules restricting tax relief on travel and subsistence payments to workers supplied by another organisation where individuals are subject to end-user supervision, direction and control (i.e. supervision, direction and control of the charity). These came into effect on 6 April 2016.

Where the new rules apply, the individual is no longer able to obtain tax relief on home to work travel. Any reimbursement of these costs should be subject to PAYE and NIC.

The new rules apply to workers who are:

• supplying personal services
• engaged through an employment intermediary (in this case, the agency)
• subject to (or to the right of) supervision, direction or control of any person (in this case, the charity).

HMRC have published guidance here.