HM Revenue and Customs officials say taxis provided for employees are always a taxable benefit unless there is no public transport available, and are clamping down on the practice.
Clive Gawthorpe, a tax partner at the Manchester office of accountants UHY Hacker Young, said: "In cities like Manchester it will be virtually impossible for employers to provide taxis to late-working staff without them being taxed.
"For a lot of hardworking employees, we could be talking hundreds of pounds of tax every year. It seems incredibly harsh that there are no exemptions on personal safety or security grounds.
"Also, it makes it very hard for employers to incentivise employees to work late if they can't provide taxis home tax-free."
HM Revenue & Customs officials say employees are allowed up to 60 tax-free journeys a year but only if they meet conditions, including a lack of public transport.
A COMPETITION has been started to recognise the UK's best home-based business.
Website Enterprise Nation will honour the venture that shows the most progress and promise in business, lifestyle and technology.
It says home-based enterprises account for 59 per cent of start-ups.
The winner will get a home-office makeover, a year's supply of coffee, and marketing support.
It is open to any business which has been operating for more than six months.
Enter via www.enterprisenation.com. The closing date is September 17 and the winner will be announced two weeks later.
BUSINESS support agency Blue Orchid has won contracts to nurture start-ups in deprived areas of Manchester such as Moss Side and Longsight.
It secured deals from the North West Development Agency and Manchester city council to work with black and other ethnic minority groups, the long-term unemployed and disabled people, and single parents.
WARRINGTON-based project management business Knowles has won a contract to advise on a £20m waterway on Merseyside. British Waterways has engaged Knowles for its link between the Leeds-Liverpool Canal and Liverpool's docks. Knowles director Nick Sunderland is leading the team advising British Waterways.
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