Tax relief for travel to temporary place of work

withabix

Ms_Chocaholic wrote: »

Sorry to hijack the thread; but I just wanted to know whether the tax relief would apply to me. My employer moved our work base to another office and I travel an additional 30 miles per day. My employer pays me 46p per mile for 2 years after the move - the mileage is paid with my normal monthly salary - can I claim tax relief on this?

No tax relief is due.

However, you actually have a TAX LIABILITY, as you have been paid more than the 40p per mile allowed.

Please send HMRC a cheque for the tax on 6p per mile forthwith!

TM1976

withabix wrote: »

The point about passing your normal place of work is valid.

Not quite, this is what HMR&C manual has to say:http://www.hmrc.gov.uk/manuals/eimanual/EIM32230.htm

It must however be a journey significantly different to the normal commute: http://www.hmrc.gov.uk/manuals/eimanual/EIM32300.htm

TM1976

withabix wrote: »

No tax relief is due.

However, you actually have a TAX LIABILITY, as you have been paid more than the 40p per mile allowed.

Please send HMRC a cheque for the tax on 6p per mile forthwith!

Actually the whole 46p is taxable because the employer is paying for the employees commute, which is a taxable benefit. As this appears to be paid with the ordinary salary payment however it seems like the employer is taxing this amount.