insurance company say i need business insurance - so would IR agree

tir21

i work for one company but can be based at any of three of their locations on different days of the week. When i go to a particular loaction i stay there all day - and do not travel between the various locations.

so on monday i may commute to location A - be there all day then go home
on tursday i may be at location B - be there all day and go home etc

However despite this fact all the insurers i have contacted insist i need business class 1 - because SDP&C covers commuting to the same place of work- not different places on different days

since (in the eyes of my insurer) i will be travelling business miles - would i be able to claim these journeys as business mileage and get a mileage rebate from the IR

thanks

WHA

The advice of an insurance company will have no bearing whatsoever on HMRC's view. All that matters is what the HMRC rules/law says. The tax law will over-ride the opinion of a random insurance company!

Katgrit

I have always hit this problem - I'm the same as you except I only have 2 possible bases. I've always thought it was unfair as surely business use is for people who travel in their job eg. mobile hairdressers, sales reps etc.

However, I've changed insurers and for the first time ever I noticed that my policy from Liverpool Victoria, which I don't have business use on, says "Social, domestic, pleasure and commuting to permanent place(s) of work". I didn't ask specially, that's just their standard wording. That little (s) makes all the difference!

00ec25

WHA wrote: »

The tax law will over-ride the opinion of a random insurance company

The OP already knows that, which is why the Q being asked is what are the HMRC rules

Katgrit wrote: »

However, I've changed insurers !

As with everything these days it is a matter of shopping around to find a policy that is valid in your circumstances for a price you are willing to pay

Now to answer the OP ‘s question:

HMRC rule is that relating to “temporary workplaces”. In basic terms, if from the outset your employment pattern means you are expected to be multisite for more than 2 years, then as far as HMRC is concerned, you have multiple permanent places of employment and so cannot claim business travel as each journey is classed as a normal commute and therefore you cannot claim tax relief

the key test is explained here
http://www.hmrc.gov.uk/manuals/eimanual/EIM32150.htm

a fuller explanation is here, work through each link and then come back if you think one applies to you
http://www.hmrc.gov.uk/manuals/eimanual/eim32075.htm

dacouch

A very topical thread

tir21

ooec - thanks

HMRC rule is that relating to “temporary workplaces”. In basic terms, if from the outset your employment pattern means you are expected to be multisite for more than 2 years, then as far as HMRC is concerned, you have multiple permanent places of employment and so cannot claim business travel as each journey is classed as a normal commute and therefore you cannot claim tax relief

should insurance companies by compelled to take the same approach. It seems at the moment insurance companies are able to class something as business travel - that by any rational viewpoint - is not business travel

when they have the option commute to as single place of work

shouldnt they also have the option

commute to more than one place of work

a lot of my colleagues dont realise that SDP&C does not cover them. They dont feel like they use their car for business

Yorkie1

Be aware that OP has a multi-page thread running on this topic already in the Insurance forum...
https://forums.moneysavingexpert.com/discussion/4559321