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TonyTax
TonyTax, Tax Consultant
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Hello, l work as a site manager in the construction industry I

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Hello, l work as a site manager in the construction industry
I have been on the same project for over 4 years and have been supplied with a fully expensed company van which l mainly use to travel to and from site, 90 miles round trip per day
My company has offered 45p per mile for first 10000 miles and 25p thereafter if we use our own cars. I would need to buy, insure maintain and fuel out of this
Unfortunately, I am told I would need to 40% tax on this money because I am working on the same site for more than 2 years and becomes a permanent place of work and not classed as temporary anymore
Is this correct?
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi.

You can find the detailed rules on what constitutes a temporary workplace in EIM32075 and in EIM32080 to EIM32108 starting here.

Where it s known at the outset that an individual will be working at a site for more than 24 months and they spend more than 40% of their working time there, then that place is not a temporary workplace and the costs of travel from home to the site and vice versa are not tax deductible as that travel is treated as "normal commuting". The mileage allowance is tax free at the levels you mentioned or lower if it is paid for "business travel". If it is paid for "normal commuting" it is taxable as additonal salary at whatever tax rate or combination of tax rates the individual pays.

I hope this clarifies your situation but let me know if you have any further questions.
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15884
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
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