Travel expenses : temporary workplace

Travel expenses : temporary workplace

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I have a couple of limited company directors who commute daily to London for their work.  I have been reviewing the rules on claiming travel expenses if to a temporary workplace and in particular the example given by HMRC at EIM32089.  One of my clients has a contract likely to last until the end of the year (it's been renewed a few times since he started work at the particular location in July 2010).  If he then gets a contract at a location within a few miles of the current contract it appears that the temporary workplace rules would apply.  Is it best not to claim the travel costs at all, otherwise what happens if it does turn out to meet the definition of a permanent workplace? 

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By Jekyll and Hyde
15th Aug 2011 15:20

I would discuss the issue with the client.....

.... and if they are happy to include the expense in the accounts, I would document the communications with client and include. At this point you believe the assignments to be fitting with the temporary workplace rules so I am assuming that it would only be an issue should the 24 month rule be broken and it is not possible to determine that at this point in time. I had a similar issue in connection to this about 2 years ago and client insisted on the travel expenditure being included as it was a significant amount of expenditure.

I highlighted potential BIK issues and also CT issues and client was happy to take the view that they were within the temp rules. At the time I could not fully disagree with them but highlighted the risks and documented them. Whatever you decide to do, hindsight will show that the other answer may be right, however we work with foresight.

I would expect that others would disagree with me.

 

 

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