What is a temporary workplace?

A temporary workplace is a location where individuals work occasionally or for a limited time.

HMRC recognises that using your own vehicle or public transport to a location other than one’s regular workplace may lead to extra expenses.

This is good news for workers who undertake business travel to a temporary workplace because they may qualify for tax relief on travel costs that their employer has not covered.

The basic principle states that commuting costs between an individuals home and regular workplace cannot be claimed under HMRC guidelines, while travel expenses from home to a temporary work location should be allowable.

The term “temporary” carries a distinct legal meaning in tax legislation that will often differ from its everyday usage and definition.

According to HMRC, a temporary workplace refers to a location where individuals must perform duties for a limited duration as part of their primary employment responsibilities.

A limited duration is typically for less than a 24 months period which means a temporary workplace ceases to be valid if you attend it for a continuous period that exceeds 24 months. This is known as the 24-month rule.

In this temporary workplace guide we discuss HMRC’s regulations regarding tax relief claims for temporary workplace travel costs and detail the commonly known ’24-month rule’.

Is my workplace classed as temporary?

For tax relief on travel to be allowable HMRC states that in order for travel expenses to be allowable they must satisfy one of the following tests under Income Tax (Earnings and Pensions) Act 2003 (ITEPA):

• It is “necessarily incurred in the performance of duties” (ITEPA s.337)
• The travel is “for necessary attendance” (ITEPA s.338)

If your travel meets one of the above tests and does not include either private or ordinary commuting journeys you should move on to reviewing the 24 month rule which we cover below.

Does the 24 month rule affect my claim?

The 24 month rule stipulates that a workplace cannot be classified as temporary if an employee’s continuous work period at that location extends, or is expected to extend, beyond 24 months.

A continuous work period refers to a time when an employee’s responsibilities are primarily carried out at a specific workplace.

According to HMRC guidelines, duties are considered substantially performed when an employee spends 40% or more of their working hours at that location.

• if an employee has devoted, or is anticipated to devote, 40% or more of their work time at a specific workplace over a timeframe exceeding 24 months, that location will be deemed a permanent workplace.
• if an employee dedicates less than 40% of their time at a temporary workplace, the 24-month rule does not apply to their situation.

HMRC states:

“Usually it will be clear whether or not an employee expects to spend more than 40% of their working time at a particular workplace over a period of more than 24 months.

Where there is some uncertainty, cases should be decided on their facts. An obvious starting point is what the employee has been told about the length of the assignment.”

In theory if you spend less than 40% of your time at a temporary workplace, the 24-month rule does not apply to you.

You can find more information and some examples in HMRC’s temporary workplace guidance on .GOV.

What can I claim back if I travel to a temporary workplace?

Allowable travel costs encompass what the journey itself actually cost plus related expenses including meals, overnight stays, road charges, parking fees, cab fares, or vehicle rental payments.

Common travel claims include:

• Mileage tax relief for using your own car or van.
• Public transport costs for trains and buses.
• Subsistence covering the cost of food and drinks.

Business travel costs can be claimed as tax deductions when these requirements are fulfilled:

• You cover your own travel costs without any company reimbursement.
• Your employer provides reimbursement for employee-paid travel expenses but it is taxed.
• Your employer pays for only some of the cost of travel. For mileage claims this would mean paying below the AMAP rates.

How do I submit a travel tax rebate claim to HMRC?

Knowing how to claim back travel tax relief from HMRC is key to getting your money back in the quickest time possible.

The value of your claim and if you already complete a self assessment tax return affects the way you should send your submission.

Travel claim below £2500:

For claims falling under £2500, you have the flexibility to submit these without the need for a full tax return unless you already complete a tax return for another reason.

The submission must be precise and made by completing a P87 expenses of employment form.

It is essential to maintain and provide supporting documentation as evidence when requested by HMRC to validate your claim. This may include mileage logs, fuel receipts, and journey details.

Travel claim above £2500:

When submitting a mileage claim exceeding £2500 for a single tax year, it is mandatory to declare this amount through a self assessment tax return.

This claim must be reported alongside your complete income details and any additional work-related expenses you wish to claim like uniform washing.

If you are already required to submit a tax return for other purposes, such as self-employment or additional income sources, you must include your mileage expenses within the employment section (SA302) of your tax return.