Travel Expenses

[GillsMan]

Hi,

I've read the article on LtdCo Travel Expenses and the Moving To a Nearby Site.

My situation:

• Started working for client, based in London, in May 2010
• LtdCo was formed in August 2010, based in Crawley
• I claimed travel expenses from then
• February 2011 my LtdCo moved to London
• I still claim travel expenses, but they are much lower

So, does the fact that I/my LtdCo moved in Feb 2011 (thereby giving me a significantly different journey) have an effect on the 24 month clock? I.e. can I count it from Feb 11, or is it still from May 2010?

Also, is my understanding correct that, no matter where I'm working in London, I'm unlikely to be able to claim travel expenses after 2 years, since pretty much anywhere in London is going to be deemed the same location? I live in East London, so pretty much any London-based clients are going to involve a West-bound journey.

Travel expenses are only £125 per month, so I can easily swallow it myself if I need to, but wanted to get others' views.

Cheers!

[Craig@Clarity]

It doesn't have an effect on the 24 month clock as this looks at the location you are working at, therefore, you count it from May 2010.

Just bear in mind, HMRC view the city of London as one location. It's up to you to interpret the guidelines. Here's a nice link for you EIM32080 - Travel expenses: travel for necessary attendance: definitions: temporary workplace: limited duration, the 24 month rule

[SueEllen]

Also, is my understanding correct that, no matter where I'm working in London, I'm unlikely to be able to claim travel expenses after 2 years, since pretty much anywhere in London is going to be deemed the same location? I live in East London, so pretty much any London-based clients are going to involve a West-bound journey.

The rules aren't that clear and as London is massive so everything depends.

So say you had a client in Croydon and previously had a client whose offices where near Oxford Circus I would definitely say those where substantially different journeys. Especially as one would take you about 30 minutes whilst the other would take you an hour and likely involve the train as well as the tube.

However if you had two clients one near Oxford Circus and the other near Holborn I would think they were both the same journey as they are on the same tube line, Holborn is about 2 stops away and they are both in zone 1.

You could also have clients a bus or a bike ride away from you, which would be a different journey from travelling into Central London.

[GillsMan]

Thanks both, very useful pointers there.

Craig, thanks to your links, I found some very useful examples on the HMRC site: EIM32089, EIM32282 and EIM32283.

All back up broadly what you're saying and I now understand that it's the journey that is the be all and end all.

Sue, very good point. I live near London City Airport and currently it's a half hour DLR ride into Bank and then a 10 minute walk to ClientCo. I wonder if I was to get a gig at, say, Canary Wharf and I decided to cycle (probably about a 25 minute cycle), whether HMRC would consider that to be a different journey. I suspect not, since were I to use public transport, the journey wouldn't be significantly different from their POV.

[Sockpuppet]

Its not based on your journey but destination.

Ie if you work somewhere for 23 months then move further away that's your fault so you can't claim. Same for moving closer.

[northernladuk]

Especially as one would take you about 30 minutes whilst the other would take you an hour and likely involve the train as well as the tube

Sorry to keep with the same old broken record but 30 mins difference is NOT a significantly different journey and the type of transport used is irrelvent. It is a bit of pain in the ass that is all. A permie Londoner would not be put off taking a job with this difference.

Remember the rule is not designed for us, it is more based on relocation to a different area. You would not relocate for a 30 min difference in journey or the type of transport required.

The way I see it is significant is something out of the ordinary that a permie would not do to get another job without moving. Just for rule of thumb at least.

[GillsMan]

Its not based on your journey but destination.

Ie if you work somewhere for 23 months then move further away that's your fault so you can't claim. Same for moving closer.

Ah yes, good point. Cheers for clarifying.

[sktaxadvice]

HMRC view journeys to and from a "regular workplace" as ordinary commuting and therefore not tax deductible but any other genuine business journey should be allowable.

[contractor59]

If anyone from SJD is reading this I would be interested to get their view.

I know someone who has been advised by them to treat different sites within the City of London as separete locations. SJD told them this is the advice they give all their clients.

[Craig@Clarity]

If anyone from SJD is reading this I would be interested to get their view.

I know someone who has been advised by them to treat different sites within the City of London as separete locations. SJD told them this is the advice they give all their clients.

Interesting. Here's a nice example from HMRC Travel expenses: travel for necessary attendance: definitions: temporary workplace: example