Home to Office Commute - mileage claimable?
Discussion
HMRC guidance is clear that the Home to Office mileage isn't claimable.
Does the same rule apply if somebody is asked to come in at the weekend (or on one of their non-working days) to do overtime?
For example - member of staff has to come in on a Thursday(which is a non-work day for her). She gets paid overtime for this. Can she also claim home-to-office mileage?
Example 2 : member of staff has to come in on a Thursday(which is a non-work day for her). She doesn't get paid overtime. Instead she takes TOIL on another day. Can she claim mileage?
Example 3 - member of staff has to come back to the office in the evening to check why the alarm is ringing. She is getting paid 2 hours call-out. can she also claim mileage?
Are there any circumstances in which mileage to the normal office can be claimed?
I appreciate that different organisations have different rules/expectations. It's HMRC's view that I need and, unfortunately, their guidance is not iron-clad.
Does the same rule apply if somebody is asked to come in at the weekend (or on one of their non-working days) to do overtime?
For example - member of staff has to come in on a Thursday(which is a non-work day for her). She gets paid overtime for this. Can she also claim home-to-office mileage?
Example 2 : member of staff has to come in on a Thursday(which is a non-work day for her). She doesn't get paid overtime. Instead she takes TOIL on another day. Can she claim mileage?
Example 3 - member of staff has to come back to the office in the evening to check why the alarm is ringing. She is getting paid 2 hours call-out. can she also claim mileage?
Are there any circumstances in which mileage to the normal office can be claimed?
I appreciate that different organisations have different rules/expectations. It's HMRC's view that I need and, unfortunately, their guidance is not iron-clad.
I would ask them but I think it’s a hard rule
which is a no.
To claim mileage their “place of work” must be not at that office e.g at home or a different location to the one they are going too out of normal hours.
I am home based and had to send HMRC my contract to show my permanent place of work was my home address.
which is a no.
To claim mileage their “place of work” must be not at that office e.g at home or a different location to the one they are going too out of normal hours.
I am home based and had to send HMRC my contract to show my permanent place of work was my home address.
Emergency call-out expenses
Employees sometimes have to travel to a permanent workplace unexpectedly or in an emergency. Where the cost of that journey would not qualify for tax relief in normal circumstances, it will not qualify for tax relief just because the journey was made in response to an emergency. It makes no difference if the journey takes place outside normal working hours or if the employee is returning to the workplace having completed their normal duties there.
Example
Isabel is required to be a keyholder for her permanent workplace. One night she is called out by the police responding to a burglar alarm. Isabel is not entitled to tax relief for her journey from home because it’s ordinary commuting.
3.51
Exceptionally, where an employee is obliged to perform duties at home and while travelling to an emergency at a permanent workplace, the travel may be regarded as travel between 2 workplaces. In such circumstances, the cost of that travel will qualify for tax relief. To get tax relief, the employee has to:
•
give advice on handling the emergency before starting the journey
•
accept responsibility for those aspects appropriate to their duties from that time
•
have a continuing responsibility for the emergency whilst travelling to the permanent workplace
Example
Jack is employed as a vet. He operates a surgery from his home. He also works at an animal hospital some distance away. It’s an objective requirement of his employment that he perform his duties at these 2 workplaces. One night he is required to attend an emergency at the hospital. He is phoned at his home/surgery and immediately takes responsibility for the emergency and issues instructions on action to be taken. While travelling to the hospital he uses a hands-free mobile phone to continue to control the response to the emergency. The journey is between 2 workplaces in the performance of Jack’s duties. Jack is entitled to tax relief for the cost of this journey to the hospital.
Page 28
3.52
Employee on standby
Where an employee is on stand-by and can be called out at short notice he or she is still not entitled to tax relief for a journey which is ordinary commuting.
Example
Jane works fixed hours in a restaurant, but can also be called in when there are staff shortages. When she is called in outside her normal hours she is not entitled to tax relief for travel from home to the restaurant because this is ordinary commuting.
Employees sometimes have to travel to a permanent workplace unexpectedly or in an emergency. Where the cost of that journey would not qualify for tax relief in normal circumstances, it will not qualify for tax relief just because the journey was made in response to an emergency. It makes no difference if the journey takes place outside normal working hours or if the employee is returning to the workplace having completed their normal duties there.
Example
Isabel is required to be a keyholder for her permanent workplace. One night she is called out by the police responding to a burglar alarm. Isabel is not entitled to tax relief for her journey from home because it’s ordinary commuting.
3.51
Exceptionally, where an employee is obliged to perform duties at home and while travelling to an emergency at a permanent workplace, the travel may be regarded as travel between 2 workplaces. In such circumstances, the cost of that travel will qualify for tax relief. To get tax relief, the employee has to:
•
give advice on handling the emergency before starting the journey
•
accept responsibility for those aspects appropriate to their duties from that time
•
have a continuing responsibility for the emergency whilst travelling to the permanent workplace
Example
Jack is employed as a vet. He operates a surgery from his home. He also works at an animal hospital some distance away. It’s an objective requirement of his employment that he perform his duties at these 2 workplaces. One night he is required to attend an emergency at the hospital. He is phoned at his home/surgery and immediately takes responsibility for the emergency and issues instructions on action to be taken. While travelling to the hospital he uses a hands-free mobile phone to continue to control the response to the emergency. The journey is between 2 workplaces in the performance of Jack’s duties. Jack is entitled to tax relief for the cost of this journey to the hospital.
Page 28
3.52
Employee on standby
Where an employee is on stand-by and can be called out at short notice he or she is still not entitled to tax relief for a journey which is ordinary commuting.
Example
Jane works fixed hours in a restaurant, but can also be called in when there are staff shortages. When she is called in outside her normal hours she is not entitled to tax relief for travel from home to the restaurant because this is ordinary commuting.
xx99xx said:
At my public sector organisation, we can claim mileage to the office if you're going there for business out of normal work hours.
Maybe - but note that doesn't mean that payment is tax-free unless there's some special arrangement between your employer and HMRC.There's an example in HMRC's guidance for employers: https://assets.publishing.service.gov.uk/governmen...
In Section 3.3:
"Dermot’s employer sometimes requires him to attend his permanent workplace outside normal working hours – for example, at the weekend. This means he incurs extra costs on bus fares, the cost of meals eaten at his desk and sometimes even the cost of overnight accommodation near his workplace. No tax relief is available for any of this expenditure because all journeys between home and his permanent workplace are ordinary commuting. It makes no difference that Dermot’s employer requires him to make the journeys or that they’re made outside his normal working hours."
rlg43p said:
Useful stuff
Thanks Rig - do you have a HMRC link for this?Out staff union is throwing up a million and one different scenarios where they think mileage should be claimable and will only accept contrary instructions if its backed up by HMRC guidance.
Most of them have the flexibility to work at home but they're not actually designated Homeworkers. If they go to a client's office I assume that they are able to claim the full mileage and there is no requirement to deduct "home to office"?
Sheepshanks said:
xx99xx said:
At my public sector organisation, we can claim mileage to the office if you're going there for business out of normal work hours.
Maybe - but note that doesn't mean that payment is tax-free unless there's some special arrangement between your employer and HMRC."I don't think this out of hours travel is treated any differently regarding tax (with us at least) as the mechanism for claiming mileage is the same as any other mileage claim. We're not asked to input time of day but still have to include a to/from postcode and reason for travel.
xx99xx said:
Sheepshanks said:
xx99xx said:
At my public sector organisation, we can claim mileage to the office if you're going there for business out of normal work hours.
Maybe - but note that doesn't mean that payment is tax-free unless there's some special arrangement between your employer and HMRC."I don't think this out of hours travel is treated any differently regarding tax (with us at least) as the mechanism for claiming mileage is the same as any other mileage claim. We're not asked to input time of day but still have to include a to/from postcode and reason for travel.
Even if, in your case, it's strictly speaking wrong to pay it tax-free, it could be it's never come to HMRC's notice.
You cannot claim any business miles from HMRC if it’s to your permanent place of work, no ifs or buts.
As people have alluded to, employers can pay what they want, when they want. It doesn’t mean its a business journey from HMRC point of view.
As people have alluded to, employers can pay what they want, when they want. It doesn’t mean its a business journey from HMRC point of view.
Edited by ASONI on Sunday 2nd February 11:34
Sheepshanks said:
Maybe - but note that doesn't mean that payment is tax-free unless there's some special arrangement between your employer and HMRC.
There's an example in HMRC's guidance for employers: https://assets.publishing.service.gov.uk/governmen...
In Section 3.3:
"Dermot’s employer sometimes requires him to attend his permanent workplace outside normal working hours – for example, at the weekend. This means he incurs extra costs on bus fares, the cost of meals eaten at his desk and sometimes even the cost of overnight accommodation near his workplace. No tax relief is available for any of this expenditure because all journeys between home and his permanent workplace are ordinary commuting. It makes no difference that Dermot’s employer requires him to make the journeys or that they’re made outside his normal working hours."
If it’s less than 45p a mile than employers can pay it tax free no special arrangements required, regardless of whether HMRC consider it a business journey or not. There's an example in HMRC's guidance for employers: https://assets.publishing.service.gov.uk/governmen...
In Section 3.3:
"Dermot’s employer sometimes requires him to attend his permanent workplace outside normal working hours – for example, at the weekend. This means he incurs extra costs on bus fares, the cost of meals eaten at his desk and sometimes even the cost of overnight accommodation near his workplace. No tax relief is available for any of this expenditure because all journeys between home and his permanent workplace are ordinary commuting. It makes no difference that Dermot’s employer requires him to make the journeys or that they’re made outside his normal working hours."
Countdown said:
Thanks Rig - do you have a HMRC link for this?
Out staff union is throwing up a million and one different scenarios where they think mileage should be claimable and will only accept contrary instructions if its backed up by HMRC guidance.
Most of them have the flexibility to work at home but they're not actually designated Homeworkers. If they go to a client's office I assume that they are able to claim the full mileage and there is no requirement to deduct "home to office"?
Clients home would usually be considered temporary by HMRC so mileage would be claimable. No home to office deduction needed. If journey qualifies from HMRC point of view then you can always claim the full journey. Out staff union is throwing up a million and one different scenarios where they think mileage should be claimable and will only accept contrary instructions if its backed up by HMRC guidance.
Most of them have the flexibility to work at home but they're not actually designated Homeworkers. If they go to a client's office I assume that they are able to claim the full mileage and there is no requirement to deduct "home to office"?
ASONI said:
If it’s less than 45p a mile than employers can pay it tax free no special arrangements required, regardless of whether HMRC consider it a business journey or not.
Sorry, but that is wrong. If HMRC don't consider it business miles it would be treated as a benefit and the 45p would be taxable as income at your marginal rate. rlg43p said:
Sorry, but that is wrong. If HMRC don't consider it business miles it would be treated as a benefit and the 45p would be taxable as income at your marginal rate.
My understanding is that it isn’t wrong. For example an employee might have to attend a workplace out of to hours because the alarm has been triggered.
He can’t claim tax relief as it’s to his permanent workplace.
The employer however is free to reimburse up to 45p a mile without any tax implications. It doesn’t even get reported to HMRC as it’s a straightforward reimbursement for a genuine expense.
ASONI said:
He can’t claim tax relief as it’s to his permanent workplace.
The employer however is free to reimburse up to 45p a mile without any tax implications. It doesn’t even get reported to HMRC as it’s a straightforward reimbursement for a genuine expense.
Surely that's contradictory?The employer however is free to reimburse up to 45p a mile without any tax implications. It doesn’t even get reported to HMRC as it’s a straightforward reimbursement for a genuine expense.
ASONI said:
The employer however is free to reimburse up to 45p a mile without any tax implications. It doesn’t even get reported to HMRC as it’s a straightforward reimbursement for a genuine expense.
That’s completely wrong - it not even a reimbursement, as the employee isn’t spending 45p per mile.There’s an exemption from reporting business mileage payments - but the point is this isn’t business mileage. Sure, an employer could pay, but if it got picked up on an inspection they’d get slaughtered.
Gassing Station | Jobs & Employment Matters | Top of Page | What's New | My Stuff