How to calculate cost of commute to a single place of work?

Nearlyold

Just to clarify the tax situation, unless the work move is temporary, travel to and from a regular place of work (ie commuting) is not an allowable expense so there is no 45p mile HMRC "tax free" allowance.

Whatever amount the OP agrees with the employer to cover the additional travel costs counts as taxable income.

user1168934

Nearlyold wrote: »

Just to clarify the tax situation, unless the work move is temporary, travel to and from a regular place of work (ie commuting) is not an allowable expense so there is no 45p mile HMRC "tax free" allowance.

Whatever amount the OP agrees with the employer to cover the additional travel costs counts as taxable income.

The move is permanent but I suspect the travel compensation (if offered at all) will only be for a short period of time. I think in such a case it will just be like an expense claim and not taxable. Correct?

neilmcl

user1168934 wrote: »

The move is permanent but I suspect the travel compensation (if offered at all) will only be for a short period of time. I think in such a case it will just be like an expense claim and not taxable. Correct?

I think the point he was making is that you wont be able to claim tax relief for it and you will have to declare it as taxable income.

AdrianC

It certainly isn't an expense claim, because it's not money you've spent in the course of business activity.

It's simply a little cash bonus to make the change of your personal commute a little easier.

lopsyfa

Andy_L wrote: »

Why? Tax is still going to be paid on the grossed up allowances

My answer was to the suggestion of paying the mileage allowance instead of paying salary when there was no business mileage to reduce the tax.