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First workplace after hiring can be a temporary WP

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I wanted to ask a question about mileage and temporary workspace. 

Employee is entitled to a deduction for the full cost of travel there and back if they meet the 24 month rule. 

Question:
Can an employee's workplace be considered a temporary workplace. 
If the employee has just been recruited and this is their first job. However, it is known that after several months (not exceeding the 24 month rule) it will change?

Example:

An employee lives in City A. He has just been hired and will work in City B for 12 months. It is known that in 12 months he will change his place of work to city C. 

Will the trip from City A to City B be considered a temporary workplace?

What makes me doubtful is that this is the employee's first workplace.

 

Replies (4)

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By lesley.barnes
09th Nov 2021 14:23

I would say that the employee is not entitled to deduct travel from his home to his workplace. What does his contract of employment say? Would the employer pay the employees mileage from home to his workplace? I don't think it matters if this is the employees first workplace it is his duties their that count.

See the notes on secondment. I think that this covers off various things to look at in the employees contract as to whether it is a temporary employment or permanent employment.

www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim32125

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By gillybean04
09th Nov 2021 17:03

"Employee is entitled to a deduction for the full cost of travel there and back if they meet the 24 month rule."

Is that what the rule is?

(4)A place which the employee regularly attends in the performance of the duties of the employment is treated as a permanent workplace and not a temporary workplace if—
(a)it forms the base from which those duties are performed, or
(b)the tasks to be carried out in the performance of those duties are allocated there.

(5)A place is not regarded as a temporary workplace if the employee’s attendance is—
(a)in the course of a period of continuous work at that place—
(i)lasting more than 24 months, or
(ii)comprising all or almost all of the period for which the employee is likely to hold the employment, or
(b)at a time when it is reasonable to assume that it will be in the course of such a period.

Your current approach seems to be to consider if the employee will be there less than 24 months and if so, a deduction is allowed.

I would suggest the correct approach is to determine whether the workplace is temporary or permanent. If temporary THEN you need to consider the 24 month rule as longer than 24 months will turn a temporary workplace into a permanent workplace. BUT being less than 24 months will not make a permanent workplace a temporary one.

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Replying to gillybean04:
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By Kozak
10th Nov 2021 11:16

That's what this rule is.

Since the beginning of his employment, an employee has been working for one contractor in Austria to whom he commutes. This has now been going on for 12 months.

It is known that since December this year he will perform the contract in another city in Austria to which he will commute.

I wonder whether these 12 months of work in Austria should be treated as temporary workplace.

Section 339(2) ITEPA 2003 said:

"A workplace is not a permanent workplace if it is a temporary workplace. A temporary workplace is somewhere the employee goes only to perform a task of limited duration or for a temporary purpose. The cost of travel to a temporary workplace is deductible."

Under Section 339(2) of ITEPA 2003, should I treat a 12-month assignment in Austria as temporary workplace?

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Replying to Kozak:
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By Tax Dragon
10th Nov 2021 13:23

I agree that s339(5) is of no relevance here.

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