HMRC have updated their guidance on home-to-work travel costs in a situation where an employee’s home is also their workplace. How have these latest updates affected your right to tax relief?
HMRC have made updates to be more defined for tax relief for travel costs covering employees, including directors, that have two or more permanent workplaces, one of which is their home. Please click on this link for further information: https://www.gov.uk/guidance/ordinary-commuting-and-private-travel-490-chapter-3
For ordinary commuting between your home and a permanent workplace, travel costs are not tax deductible. However, with it being more commonplace than ever to have two places of work, including their home as well as their employer’s premises, this prompts a question of whether a tax deduction can be claimed for the cost of travelling between both. However, one thing that is certain is that tax is deductible when travelling between your home, even if it is not your workplace, and a temporary place of work, such as a customer’s premises.
The revised guidance from HMRC say that in cases where your home is also your workplace, then in some circumstances tax relief for travel costs to and from an additional workplace such as an office may be tax deductible. The key for determining this is whether you are “required” by your employer to work at home or whether you choose to do so.
The cost of commuting to your normal workplace is not tax deductible. However, if you are meant to be working from home but have to travel to another workplace, such as your employer’s premises, then the cost will be tax deductible.
To discuss your working from home and commuting tax options available to you, please contact SFB Group on 03333 444 171 or email enquiries@sfb.group.
