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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4199
Experience:  FCCA FCMA CGMA ACIS
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I have been offered a home based job but with a requirement

Customer Question

I have been offered a home based job but with a requirement to travel to London and stay over two nights per week, at my own expense. My contract as an employee will specify that my home address is my "permanent place of business". I checked with HMRC and whilst they were rather vague, they advised that I could claim relief for the cost of travel including business mileage, car parking, train and tube fares, but not for subsistence and hotel accommodation (I live 100 miles from the City). The HMRC website suggests that subsistence and hotel accommodation is allowable and in view of the cotradictory advice received I would appreciate a second opinion.
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.

Hello, I'm Keith and happy to help you with your question.

Gov UK is quite positive in its advice on their web site;

https://www.gov.uk/tax-relief-for-employees/travel-and-overnight-expenses

Their advice is:

'If you have to travel for your work you may be able to get tax relief on the cost or money you’ve spent on food or overnight expenses, called ‘subsistence’. You can’t claim for travelling to where you work, unless it’s a temporary place of work. Expenses you can claim tax relief on from your business journey include:

Public transport costs hotel accommodation if you have to stay overnight

Food and drink

Congestion charges and tolls

Parking fees business phone calls,

Fax and photocopying costs'

Frankly I am quite astonished at the advice you have received from an HMRC official assuming that the expense is wholly and necessarily incurred.

I have deliberately not mentioned the use of your car. The easiest way to claim these is using the mileage rate method. This reimburses you for all vehicle costs including capital costs. It is 45p per mile up to 10000 miles per annum and 25p thereafter.

I do hope I have set your mind at rest on this matter.

bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 3 years ago.
Thank you for your support.
Always remember that as an employee all expenses claimed against tax must be wholly and necessarily incurred. Also keep supporting vouchers and mileage records in the event of some future inquiry into your claims.