Working from Home - Tax Relief on Mileage to Office

JezCooke

Hi, I work as a software developer and am currently office based about 25miles from home. I'm hoping to be able to start working from home soon (in the same role) if I get the all clear from my boss (fingers crossed!). If it goes ahead then I would normally work from home four days per week and come into the office once (although sometimes I may come in more often if there are important meetings etc). I was wondering (optimistically hoping?!) whether this would mean that my 'permanent workplace' would become my house and that I would be able to claim tax relief on the mileage to the office on the days that I do go in (40% of 40p = 16p * 50 miles = £8/day). I guess it hinges on HMRC's definition of permanent and temporary workplaces. Of course I'll speak to my local tax office if it all goes ahead but wanted to know if this sounds plausible or if I'd be flogging the proverbial deceased equine!?

Also are there any tax advantages (or disadvantages) that I should be aware of with this type of arrangement. I understand that my employer is able to pay me £3/week tax-free towards expenses (electricity etc) without having to provide bills etc as evidence, but if they don't pay it that I can't claim the equivalent in relief as I'm working from home 'by choice'. I guess I could ask them to take £3/week off my salary and pay it to me tax-free so it doesn't cost them anything but I still get the tax advantage (ok so it'd only save me £62.40/year in tax but as Tesco says every little helps!).

Thanks in advance,

Jez

fengirl_2

If your employer changes your contract so that you are required to be based at home, then all other mileage would atttract tax relief, as well as the £3 pw for maintenance of a room at home. But, as you say, it has to be a requirement of the job (in writing), no from choice.

reddevilled

I think as an employee, required to attend the office for meetings and on a regular basis anyway, you would find it difficult to justify claiming tax relief on mileage.

Instead, look at as saving 4 days of travel, both in fuel and time. Far more beneficial than any tax relief!!!

nexuss

You would not be able to claim tax relief on mileage as it is a fixed location of work.

JezCooke

Thanks for all your comments, ahh well, that's pretty much what I expected but hey was worth checking out!

Certainly reddevilled, the saving on time and fuel four days a week (in that order!) is certainly much more relevant than any tax relief, still would have been nice to get both though! ;-)

bootman

I work from home and my contract states that. If I am called into the office then I do claim the mileage relief, HMRC said it was fine when I called and checked a couple of years ago.

I claim for things like trips to the post office as well.

MrCarrot

I'm self employed and work at home. I have an office about 5 miles away (10 mile round trip).

I have occassional meetings there maybe 2 or 3 times a month. Often I'll drive over there 2 or 3 times a week to check the post. I never conduct any real work from the premises, aside from the meetings (which I don't earn money from directly).

I've never been sure whether I can claim mileage allowance for this or not. I would argue it's not my regular place of work, but I suspect HMRC could argue otherwise.