Since the pandemic, the way we work has changed dramatically. Many employees now split their time between home and the office, and flexible working rights mean that more people than ever are working in multiple locations.
But when it comes to tax, where you work really matters—especially when claiming travel expenses. The rules can be tricky, so let’s break them down and see when travel costs can (and can’t) be deducted.
When Can You Claim Travel Expenses?
To claim tax relief on travel expenses, your workplace must meet HMRC’s definition of a temporary workplace.
A temporary workplace is somewhere you work for a limited time or specific purpose. For example: If an employee based in Birmingham is sent to work in London for a year, HMRC would treat London as a temporary workplace, meaning travel expenses are tax-deductible.
However, if you spend too much time at a workplace, it may be classed as permanent, and your travel won’t qualify for relief.
The 24-Month Rule – Why It Matters
There’s a key rule that can turn a temporary workplace into a permanent one—the 24-month rule.
If you work at a location for more than 24 months, it’s classed as a permanent workplace and travel costs are not tax-deductible.
HMRC defines a workplace as permanent if:
- You work there for more than 24 months, or
- You spend 40% or more of your working time there
If you already know a contract will last over 24 months, you can’t claim travel relief from day one. But if the duration is uncertain, you can claim—until it becomes clear that it will exceed 24 months.
What Happens If Plans Change?
Things don’t always go as expected, and tax relief can change if your working arrangements shift.
Example 1 – No tax relief:
An employee has worked for a company for 10 years and is sent to work full-time at another site for 28 months. Since they expected to be there for over 24 months, the workplace is considered permanent from the start, and they can’t claim travel relief.
Example 2 – Partial tax relief:
An employee is initially sent to a new workplace for 28 months, but after 10 months, the assignment is cut to 18 months.
- They can’t claim tax relief for the first 10 months, because at the start, the assignment was expected to last over 24 months.
- But for the remaining 8 months, the workplace now qualifies as temporary, so travel expenses become tax-deductible.
This means that HMRC looks at your expectations at the start—not just how long you actually end up working there.
Can You Claim Travel Expenses If You Work From Home?
Many employees now work remotely, but can you claim travel expenses from home to the office?
The short answer? Probably not.
Even if your home is your permanent workplace, HMRC often sees home working as a personal choice rather than a business necessity. As a result, they usually disallow travel expense claims from home to a company office.
What Should You Do Next?
If you travel regularly for work, it’s important to understand whether your workplace is temporary or permanent—because it could mean the difference between a tax deduction and no relief at all.
- Do you work in multiple locations? Check if you qualify for travel relief.
- Are you on a long-term contract? Be mindful of the 24-month rule.
- Working from home? Be aware that HMRC may not accept expense claims.
Not sure where you stand? Get in touch with Jon and the team—we’ll help you make sense of the tax rules and ensure you’re claiming everything you’re entitled to.
Call us today or drop us a message—we’re here to help!
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