Can I get tax relief for travel and other expenses?

Big_Zee

Hi,

I work from home for most of my job (managing remote staff), but have to occasionally go to London for meetings - which amount to roughly 2 or 3 days every other week or so (so 20-30% of my work time).

This is a 3 hour commute from home, so costs quite a bit in train fare and I need to get a hotel, which again in London adds up to a considerable amount.

I am wondering if any expert could tell me if I am eligible to claim Income tax relief against these expenses which come out of my own pocket.

Thanks in advance.

uknick

Is your home your official place of work or where you chose to work?

You might want to read the thread currently running here;

https://forums.moneysavingexpert.com/discussion/5906957/claiming-travel-costs

Big_Zee

uknick wrote: »

Is your home your official place of work or where you chose to work?

You might want to read the thread currently running here;

https://forums.moneysavingexpert.com/discussion/5906957/claiming-travel-costs

Well as a director (not self employed) I could get my contract written to however I want - although I don't think I have ever had an official contract.

Its a genuine case though that my official place of work would be home though (I manage remote staff in the far east). But I do occasionally need to go to London for meetings.

agrinnall

So you are an employee (as well as a director), does your employer have an HR function? If it does ask them what your official place of work is, and if there isn't one get it in writing from them that it is your home. In that circumstance I think your claim would be allowed.


One other thing, are the meetings in London with your employer (or at their premises) or elsewhere?

Big_Zee

agrinnall wrote: »

So you are an employee (as well as a director), does your employer have an HR function? If it does ask them what your official place of work is, and if there isn't one get it in writing from them that it is your home. In that circumstance I think your claim would be allowed.


One other thing, are the meetings in London with your employer (or at their premises) or elsewhere?

Yes I'm an employee and director - and yes we do have a hr function.

The meetings are generally with my employer and at their premises. However it varies. EG next week I need to go to London for 4 days - the first 2 I am at a conference, the 3rd I'm in the office for meetings, and on the 4th I've got an external meeting at a venture capitalist.

DigForVictory

It makes more sense to be refunded by the business than by the taxman. Not least as you can track & hustle a repayment better.

Talk to HR about what paperwork is involved/mandatory/recommended & how long you have to keep it.

Big_Zee

DigForVictory wrote: »

It makes more sense to be refunded by the business than by the taxman. Not least as you can track & hustle a repayment better.

Talk to HR about what paperwork is involved/mandatory/recommended & how long you have to keep it.

Thanks - Good point. What would the situation be if I put my hotel on the company credit card and the company knocked the cost off my salary??

Commuting on a daily basis 4 hours door to door each way is obviously not a viable option so I don't really have much option other than to stay in a hotel.

TheCyclingProgrammer

Having YourCo pay for commuting expenses via a salary sacrifice arrangement would not achieve anything, it will still be taxable (it would go on your P11D).

Big_Zee

TheCyclingProgrammer wrote: »

Having YourCo pay for commuting expenses via a salary sacrifice arrangement would not achieve anything, it will still be taxable (it would go on your P11D).

From what I read it depends on if its classed a commuting or business travel, and from what I understand its business travel if its classed as a temporary workplace. Then looking at the defintion of a temporary or permanent workplace I see :"3.20
This means that where the employee has spent, or is likely to spend, 40% or more of
their working time at that particular workplace over a period of more than 24 months,
it will be a permanent workplace." https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/685996/490_0418_final.pdf

As I'm only working there 20-30% of the time its seems it would be considered a temporary workplace.

uknick

As you're keen to have the travel classified as business I suggest you;

a) have HR give you an employment contract and,
b) in it have your home address defined as your main place of work.

Having said that, I'm a little surprised you have an HR department and don't know if you've been given a contract of employment.

My gut feeling is that you're on the cusp of the definition of business travel and it would be interesting to see what HMRC say if they audit your company.

redpete

As you are not in London over 40% of the time then it will depend on whether the meetings follow a regular schedule. There is a useful guidance document on the HMRC site that uses various scenarios to explain the rules.