Temporary Workplaces and Tax, well where do you work matters for your taxes.
Before COVID , most employees worked at a permanent workplace. This was usually the same office every day.
Now, many people work from home and the office. Flexible working is common, and it brings tax questions.
One key question is about travel expenses. Are they tax-deductible? That depends on whether you work at a temporary workplace.
In this blog, we explain what counts as a temporary workplace. We also cover when you can claim travel costs.
If you want more business tax support, visit our tax services page.
Why does your workplace status matter?
If your workplace is temporary, you may claim tax relief on travel costs. If your workplace is permanent, you cannot claim these costs. Travel between home and a permanent workplace is commuting. Commuting is never tax-deductible.
Let’s look at the key areas of concern.
Key questions around workplace and travel
Three common tax questions come up with workplace travel:
- Are expenses for temporary workplaces tax-deductible?
- Can you claim for travel between two workplaces?
- What counts as “ordinary commuting” and gets no tax relief?
Let’s break these down.
What is a temporary workplace?
HMRC defines a temporary workplace as somewhere you work for a limited time or short task. For example, you usually work in Birmingham. You get sent to London for one year. The London office is a temporary workplace. Your travel costs are tax-deductible.
However, this only applies if you meet certain rules.
What is the 24-month rule?
A workplace stops being temporary if you work there for over 24 months.
HMRC says a workplace is permanent if:
- You work there for more than 24 months.
- You spend at least 40% of your time there.
This is called the 40% and 24-month rule.
Once this happens, travel from home to that workplace is commuting. That means no tax relief.
When does the 24-month rule start?
The 24-month rule begins from the day you expect the work to last that long.
If you know your contract is over 24 months from the start, you cannot claim any travel costs. If the length is unclear, you can claim unless it later extends beyond 24 months.
What happens if expectations change?
Sometimes contracts change, and that affects your tax relief.
HMRC gives a clear example:
- You have worked for your employer for ten years.
- You start a full-time project at another office.
- It is expected to last 28 months.
From day one, this is a permanent workplace. You cannot claim travel costs.
But what if the contract later gets cut to 18 months? For the first ten months, no tax relief applies.
For the final eight months, you can claim travel costs. Why?
The initial plan was over 24 months, so the first period counts as permanent. Once the change happens, the rest becomes temporary.
Why does this matter to you?
Many people now split time between home, office, and other sites.
Understanding workplace status saves you from costly tax mistakes.
Correctly claiming expenses helps reduce your tax bill.
How I Hate Numbers can help
At I Hate Numbers, we make tax simple.
We help you with
- Travel expenses, workplace status, and HMRC rules
- Support your business planning.
- Keep more money in your pocket?
Get in touch today.
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