As we have come to expect of most things, the answer to this question is not simple or clear cut. The regulations surrounding our tax system are complex and can be interpreted in different ways, which means all decisions are case dependent. Here are some basics to get you started and help answer the question “What can you claim for when you have to travel for work?”
What is classed as a ‘Business journey?’
There are two definitions of this term;
- Known as ‘travel on the job’, this means that it is necessary for you to travel between different work locations to fulfill your role.
- A journey to and from a workplace when being at that workplace is an essential part of your employment. This does not mean normal commuting or it is a personal preference to be present at the workplace.
Commuting Journey
Most of us have to travel from our homes to our place of work and you cannot usually claim for this everyday commute, regardless of when you clock in or out.
There are three exceptions to this rule.
- Emergency call-outs.
If you are making the journey from home to work as a result of an emergency call-out and your “duty of employment” starts before the journey, then you can make a claim. For example, an NHS employee who assesses and advises a patient during an initial phone call before beginning their journey.
- Travelling from your home to a “temporary workplace”.
You are eligible to claim for these types of journey! “Temporary workplace” has a very specific HMRC definition. It means that you are there for a “temporary purpose” or for a “limited duration”. “Temporary purpose” means a one off visit and “limited duration is defined as spending at least 40% of your working time for up to 24 months at that location.
- An irregular journey.
So, if you usually make a daily commute to a permanent place of work, as we have already found out, that is not eligible. Occasionally travel to or from your home to another place of work may be required. If this journey is a lot longer or more expensive than your daily commute, then you are entitled to make a travel expenses claim.
Travelling is my job
This usually means that you do not have a ‘permanent workplace’ because you are constantly travelling. In this instance ‘business travel’ could mean your home to your eventual business destination. But if your job description refers to you working within a borough, county or region then the boundary of that area can be seen as your ordinary commute depending on your circumstances.
Bad news first – What can I not claim for?
- Capital allowances or interest on a car loan.
Good news now – what travel costs can I claim for?
- The cost of tickets on any public transport.
- There are Revenue approved payments (AMAP rates) for using your private vehicle for business travel. This applies to cars, motorbike and bicycles.
- Mileage allowance with a maximum defined by HMRC. You don’t have to declare this on your tax return and its tax free. You can use our free mileage tax rebate guide to find out more.
- But if you didn’t get any or your full mileage allowance then you can claim the remainder. It doesn’t matter what you spent, this will be given as payment per mile up to the sanctioned amount. Our mileage tax rebate calculator can work out what you can claim if you use your own car. The mileage calculator takes into consideration what rate of tax you pay and how many miles you have driven.
Helpful tip!
Keep a note of your employer’s allowance and your business mileage during the tax year as you go. You just need the calendar on your phone, or a paper diary if you prefer to go ‘old school’.
While I’m thinking about it, is there anything else I’m entitled to when I’m on business trips?
Absolutely.
- Subsistence which includes food and refreshments while you are away.
- Business phone calls.
- Accommodation.
- Other business expenses.
You cannot make a claim for personals like a morning newspaper or phoning the kids. The best thing to do is get receipts for everything and keep them somewhere safe. This is your evidence which can support any claim you want to make.
