Travel between company sites

ard123en

I'm going for another job but will mean loosing the company car and going for an allowance of £360 per month

I will have two places of work one will be classed as my base so no millage paid but travel to the other location is paid at 14p per mile

Can I claim (45-14) ie 31p per mile back against my tax also ?

madgagoo

Yes, you can providing the miles are in your car and the second workplace counts as a temporary workplace.

You need to be careful with the temporary workplace rules, as if your second location becomes a workplace then you will not be able to claim any mileage. Generally you'll be fine if you are going to be working there for less than 24 months or you spend less than 40% of your time there. If it doesn't count as a temporary workplace then the 14p per mile will be taxable.

Bear in mind you will also pay tax on the £360 car allowance.

Pennywise

If travel to the other workplace is "the norm", then no, you won't be able to claim tax relief on it's travel, you'll have two permanent workplaces, so travel won't be tax relievable for either. To get tax relief on the travel to workplace 2, it has to be temporary, i.e. for a temporary duration to do a temporary task of work. If you know from the start that you'll be going there regularly to do regular work, as part of the overall employment, then no tax relief.

From HMRC booklet 490 "employee travel" page 12:-

" Even if the employee attends the workplace only on one or two days a week, if it is on a regular basis, the workplace may still be a permanent workplace. It is possible for an employee to have 2 or more permanent workplaces. The employee will not be entitled to tax relief for the costs incurred in travelling from home to any of the permanent workplaces"

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/455952/490.pdf