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.
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.