Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Big Zee
    • By Big Zee 10th Oct 18, 10:59 AM
    • 51Posts
    • 14Thanks
    Big Zee
    Can I get tax relief for travel and other expenses?
    • #1
    • 10th Oct 18, 10:59 AM
    Can I get tax relief for travel and other expenses? 10th Oct 18 at 10:59 AM
    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.
Page 1
    • uknick
    • By uknick 10th Oct 18, 11:29 AM
    • 834 Posts
    • 367 Thanks
    uknick
    • #2
    • 10th Oct 18, 11:29 AM
    • #2
    • 10th Oct 18, 11:29 AM
    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/showthread.php?t=5906957
    • Big Zee
    • By Big Zee 10th Oct 18, 11:57 AM
    • 51 Posts
    • 14 Thanks
    Big Zee
    • #3
    • 10th Oct 18, 11:57 AM
    • #3
    • 10th Oct 18, 11:57 AM
    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/showthread.php?t=5906957
    Originally posted by uknick
    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
    • By agrinnall 10th Oct 18, 12:06 PM
    • 21,689 Posts
    • 17,565 Thanks
    agrinnall
    • #4
    • 10th Oct 18, 12:06 PM
    • #4
    • 10th Oct 18, 12:06 PM
    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
    • By Big Zee 10th Oct 18, 1:05 PM
    • 51 Posts
    • 14 Thanks
    Big Zee
    • #5
    • 10th Oct 18, 1:05 PM
    • #5
    • 10th Oct 18, 1:05 PM
    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?
    Originally posted by agrinnall
    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
    • By DigForVictory 10th Oct 18, 3:03 PM
    • 8,433 Posts
    • 26,596 Thanks
    DigForVictory
    • #6
    • 10th Oct 18, 3:03 PM
    • #6
    • 10th Oct 18, 3:03 PM
    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
    • By Big Zee 12th Oct 18, 2:21 PM
    • 51 Posts
    • 14 Thanks
    Big Zee
    • #7
    • 12th Oct 18, 2:21 PM
    • #7
    • 12th Oct 18, 2:21 PM
    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.
    Originally posted by DigForVictory
    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
    • By TheCyclingProgrammer 12th Oct 18, 4:26 PM
    • 3,286 Posts
    • 1,925 Thanks
    TheCyclingProgrammer
    • #8
    • 12th Oct 18, 4:26 PM
    • #8
    • 12th Oct 18, 4:26 PM
    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
    • By Big Zee 12th Oct 18, 4:38 PM
    • 51 Posts
    • 14 Thanks
    Big Zee
    • #9
    • 12th Oct 18, 4:38 PM
    • #9
    • 12th Oct 18, 4:38 PM
    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).
    Originally posted by TheCyclingProgrammer
    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
    • By uknick 12th Oct 18, 5:46 PM
    • 834 Posts
    • 367 Thanks
    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
    • By redpete 14th Oct 18, 10:39 AM
    • 4,299 Posts
    • 3,817 Thanks
    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.
    loose does not rhyme with choose but lose does and is the word you meant to write.
    • Pennywise
    • By Pennywise 14th Oct 18, 11:43 AM
    • 10,920 Posts
    • 20,631 Thanks
    Pennywise
    As I'm only working there 20-30% of the time its seems it would be considered a temporary workplace.
    Originally posted by Big Zee
    There is also a "habitual" dimension which has recently been established. I.e. if you always go to Office Z on Mondays - it's under the 40% but it's still classed as a permanent workplace and travel not allowable.
    • 00ec25
    • By 00ec25 14th Oct 18, 12:06 PM
    • 7,319 Posts
    • 7,034 Thanks
    00ec25
    There is also a "habitual" dimension which has recently been established. I.e. if you always go to Office Z on Mondays - it's under the 40% but it's still classed as a permanent workplace and travel not allowable.
    Originally posted by Pennywise
    interesting - do you have a link for that pennywise as it would be really useful in the context of one of our clients who is arguing the same as the OP
    • Pennywise
    • By Pennywise 14th Oct 18, 12:32 PM
    • 10,920 Posts
    • 20,631 Thanks
    Pennywise
    interesting - do you have a link for that pennywise as it would be really useful in the context of one of our clients who is arguing the same as the OP
    Originally posted by 00ec25
    It was a case referred to in a tax update course a few months ago. I'll try to find it in the course notes when I'm back in the office.
    • unforeseen
    • By unforeseen 14th Oct 18, 12:45 PM
    • 3,158 Posts
    • 4,137 Thanks
    unforeseen
    interesting - do you have a link for that pennywise as it would be really useful in the context of one of our clients who is arguing the same as the OP
    Originally posted by 00ec25
    From the link in #9

    The proportion of an employee’s working time spent at a particular workplace is a factor in determining whether or not it is treated as a permanent workplace, but it is not the only factor. 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 (go to paragraph 3.29).
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

3,278Posts Today

7,715Users online

Martin's Twitter