In our recent article, we covered how the business owner can claim back the cost of their business trips.

When claiming motoring costs, you must also consider which journeys made can be classified as business, and which are private.

Travel to a permanent workplace is a commute and therefore a private journey. HMRC says that the ‘place at which an employee works is a permanent workplace if he or she attends it regularly for the performance of the duties of the employment.’

Travel to a temporary workplace is business travel and can be claimed.

A temporary workplace becomes permanent, if the attendance at the workplace will exceed BOTH 40% of your working time (2 days per week) AND 24 months (or all/nearly all of the contract), this is classified as a permanent workplace as soon as this is known it will happen – the first 24 months are not exempt – E.G. you agree to work on a project 3 days per week for 18 months at a client’s site – more than 40% of your working week, but less than 24 months so = temporary.  After 12 months, the contract is extended by an additional 18 months on top of the initial 18 to total three years.  From this day on, it is a permanent workplace and therefore a private journey which cannot be paid by the business as it is expected to last over 24 months even though we are only 18 months in.

If you have any questions or you’re not sure whether you can claim a cost, please give us a call on 01865 379272 we’ll be happy to help you

Sage Accountant Partner Logoiris kashflowFreeagent