Close video

Travel expenses - Temporary Workplace Rules

Tuesday 12th November 2013

Travel costs are an allowable expense as long as they are for the following:

- Travelling that must be undertaken to perform your business duties.
- Not journeys which, are ordinary commuting or private travel.

Travel between home and a temporary workplace is an allowable expense. A temporary workplace is one where you go to perform a task of limited duration or for a temporary purpose.

The rules regarding temporary workplaces are based on how long you are to be based at one site or expect to be based at the site. In most cases a temporary workplace is one where you do not, and do not expect to be at the site for more than 24 months.

Example

If you are new to contracting and have just signed your first contract for 12 months then under the temporary workplace rules you may claim the travel costs. When this contract nears the end, the client offers to extend it for another 12 months. At this point you EXPECT to be there for 24 months in total and must stop claiming travel costs right away. If instead you asked for an 11 month contract extension you would only expect to be there for 23 months in total so could continue to claim your travel expenses.

There are some special circumstances that may affect any claims:

1. If you incorporate a Ltd Company, work at a single client, then close your company down.
2. If you work at a number of sites but all in a certain location i.e. London Docklands.
3. If you work at more than one site on the same contract.

As always if you have any specific questions relating to travel expenses then do get in touch - always happy to help.

Share This


GO

Popular Tags

IR35 (9) VAT (11) HMRC (49) Expenses (17) Dividends (11) Corporation Tax (19) Income Tax (34) Inheritance Tax (4) Self Assessment (27) PAYE (14) National Insurance (12) Annual Return (2) Companies House (9) Salary (12) Limited Company (56) Accounts (6) Company Secretarial (4) Insurance (6) Pensions (11) Mortgages (14)

Recent Articles

Budget 2018 Tax efficient salary and dividends in 2018-19 Pension contributions directly from your limited company Employer's National Insurance Allowance Budget 2016

Archive

August 2011 (1) October 2011 (1) November 2011 (1) March 2012 (1) March 2013 (3) May 2013 (1) June 2013 (18) July 2013 (5) September 2013 (1) October 2013 (4) November 2013 (5) December 2013 (5) January 2014 (4) February 2014 (5) March 2014 (5) April 2014 (4) May 2014 (4) June 2014 (4) July 2014 (4) August 2014 (3) September 2014 (4) October 2014 (4) November 2014 (8) January 2015 (3) February 2015 (3) March 2015 (2) April 2015 (3) May 2015 (3) June 2015 (3) July 2015 (3) August 2015 (3) September 2015 (3) October 2015 (3) November 2015 (2) December 2015 (3) January 2016 (4) February 2016 (3) March 2016 (1) April 2016 (1) August 2018 (2) November 2018 (1)