If you are one of the many people in the UK who is working from home, you may wonder about the tax implications. HMRC has updated their guidance on when tax relief is available for travel expenses ...
However, the key factor in determining tax relief for travel expenses is whether or not the journey is considered to be in the performance of your duties as an employee!
If your home is your permanent workplace, then any travel from home to another location for work purposes will not be eligible for tax relief. This is because the choice to live in a certain location is a personal one, and any expenses incurred from travelling to and from your employer's premises are a consequence of that personal choice.
For example, if you are a sales consultant who is required to work from home four days a week and be in the office one day a week, you will not be entitled to tax relief on your travel costs to the office. However, if you are required to work from home as an objective requirement of your job, you may be eligible for tax relief on travel expenses to other workplaces.
It's important to note that HMRC will not consider working from home to be an objective requirement of the job if your employer provides appropriate facilities in another location that could be practically used by you, or if working from home is a matter of personal choice.
On the other hand, if you are required to work remotely one day a week while the rest of your working week must be in the office, you will be entitled to tax relief on your travel costs as you are travelling between two workplaces. This is because the journey is considered to be in the performance of your duties as an employee.
You will need to keep records of your journeys and this includes the date, destination, and purpose of the trip. You will also need to provide evidence of the expenses incurred, such as receipts or tickets.
It's important for employees to understand that the availability of tax relief depends on whether the journey is considered to be in the performance of their duties as an employee.
If you are unsure about your eligibility for tax relief, it's best to seek advice from a tax professional like me.
If you'd like to find out more about anything I've written here, do call me on 01908 774323 or leave a comment below and let's see how I can help you.