Can I Claim Expenses for Travelling to Work

At Towerstone, we provide accountancy services in Bedford to local sole traders, landlords, and limited companies. We have written an article about Can I Claim Expenses for Travelling to Work to help you learn what travel HMRC allows, what is classed as ordinary commuting, and where claims fail.

This is one of the most common tax questions I get asked and in my experience it is also one of the most misunderstood. People often assume that if they are travelling for work then the cost should automatically be tax deductible. Unfortunately HMRC does not see it that simply.

Whether you can claim expenses for travelling to work depends on how HMRC defines your workplace and the reason for the travel. The difference between ordinary commuting and allowable business travel is absolutely crucial and getting it wrong can lead to incorrect claims penalties or awkward conversations later.

In this article I want to explain clearly when travel costs are allowable and when they are not. I will walk through how the rules work for employees self employed individuals and company directors using real world UK examples and practical explanations. Everything here is based on how HMRC applies the rules in practice not theory.

The key principle HMRC uses for travel expenses

Before getting into specific scenarios it is important to understand the core rule HMRC applies.

Travel costs are only allowable if they are incurred wholly and exclusively for the purposes of work. For travel this usually means travelling to perform your duties rather than travelling to start or finish work.

HMRC draws a firm line between ordinary commuting and business travel. Ordinary commuting is never tax deductible. Business travel often is.

Most confusion comes from misunderstanding where that line sits.

What HMRC means by ordinary commuting

Ordinary commuting is travel between your home and your permanent workplace. This applies regardless of how far you travel how often you travel or how necessary the journey feels.

In HMRC’s view your choice of where you live is personal. Even if your job requires you to attend a specific location every day the cost of getting there is still your responsibility.

From experience this is the point people struggle with most. Someone might travel 40 miles each way and feel the cost is unfair but HMRC does not take distance into account.

If you travel from home to the same workplace regularly that journey is classed as ordinary commuting and the cost is not deductible.

What counts as a permanent workplace

A permanent workplace is somewhere you attend regularly to carry out your duties and where attendance is expected to continue for the foreseeable future.

This can include an office shop site depot or factory. It does not matter whether you are employed self employed or a director. The definition applies across the board.

If you attend the same place most days or even several days a week HMRC will usually treat it as a permanent workplace.

Once a location is classed as permanent any travel between home and that location is ordinary commuting and cannot be claimed.

What HMRC means by business travel

Business travel is travel that you undertake as part of your work duties rather than to get to work.

This includes travelling between different work locations during the day visiting clients attending meetings training courses or travelling to temporary workplaces.

The key test is whether the journey is necessary to perform your work and not simply to start or end your working day.

From experience when people understand this distinction the rules become much clearer.

Travelling to a temporary workplace

One of the most important exceptions to the commuting rule is travel to a temporary workplace.

A temporary workplace is somewhere you attend to perform a task of limited duration or for a temporary purpose.

HMRC generally considers a workplace temporary if you attend it for less than 24 months and you do not spend more than 40 percent of your working time there.

If those conditions are met travel from home to that location can be allowable.

For example if you normally work from home and travel to a client site for a six month project the travel costs are usually deductible.

However if that same project extends beyond 24 months or becomes your main place of work the site may become a permanent workplace and travel would no longer be allowable.

This is an area where people often make honest mistakes especially on long running contracts.

Can employees claim travel expenses?

For employees the rules are quite strict.

You cannot claim tax relief for travel between home and your normal place of work. This is ordinary commuting.

You can usually claim for travel between workplaces during the working day such as going from the office to a client meeting.

You can also claim for travel to a temporary workplace provided it meets HMRC’s definition.

In practice most employees claim travel expenses through their employer rather than directly from HMRC. If the employer reimburses allowable travel costs there is usually no tax to pay.

If your employer does not reimburse you it may still be possible to claim tax relief through your Self Assessment or a P87 form but only for allowable business travel.

What about mileage for employees?

If you use your own vehicle for business travel your employer can reimburse you using HMRC’s approved mileage rates.

Currently these rates are 45p per mile for the first 10,000 miles and 25p thereafter for cars.

These rates are designed to cover fuel insurance maintenance and depreciation. You cannot claim fuel separately if you use mileage rates.

If your employer pays less than the approved rate you may be able to claim tax relief on the difference.

If your employer pays more than the approved rate the excess is taxable.

Can self employed people claim travel to work?

This is where things often get more complicated.

If you are self employed and travel from home to a permanent place of business such as a shop office or studio that travel is usually not allowable.

However if you work from home and travel to different client locations that travel is often allowable.

The key question HMRC asks is whether your home is genuinely your base of operations or simply where you live.

If your work is organised from home and you have no other fixed base travel to clients is usually business travel.

If you rent an office and attend it regularly travel from home to that office is ordinary commuting even if you are self employed.

From experience HMRC looks closely at this area and consistency matters.

Working from home and travel claims

Many people assume that working from home automatically makes travel allowable. This is not always true.

If you work from home by choice but your main business base is elsewhere HMRC may still see travel to that base as commuting.

If however your home is the main place where your business is run and there is no other permanent workplace then travel from home to clients or temporary sites is usually allowable.

Evidence matters here. Things like where records are kept where admin is done and where contracts are based can all influence HMRC’s view.

Can company directors claim travel expenses?

Company directors are treated as employees for travel purposes.

This means travel between home and the company office is normally ordinary commuting and not allowable.

Travel to client sites temporary workplaces or other business locations is usually allowable.

Directors often assume more flexibility because they own the company. In reality HMRC applies the same rules.

I often see directors incorrectly claiming home to office mileage which later needs correcting.

What about travelling between multiple jobs or roles?

If you have more than one job travel between jobs is not allowable.

For example travelling from one employment to another or from employment to self employment is not deductible.

HMRC treats each role separately and travel between them is seen as personal choice rather than business necessity.

This often surprises people who juggle multiple income streams.

Public transport parking and subsistence

If the travel itself is allowable then associated costs are usually allowable too.

This includes train tickets bus fares parking fees and in some cases overnight accommodation and meals.

However if the underlying journey is ordinary commuting none of these costs are deductible.

Parking near your normal workplace is not allowable even if it is expensive or unavoidable.

Again the nature of the journey determines everything.

Record keeping and evidence

Good records are essential if you claim travel expenses.

For mileage keep a log showing date purpose of trip start and end locations and miles travelled.

For public transport keep tickets or receipts.

From experience poor records are one of the first things HMRC challenges.

Estimating mileage without evidence is risky and often disallowed.

Common mistakes I see in practice

There are several recurring issues I see with travel expense claims.

Claiming home to office travel because work feels demanding.
Assuming self employed status makes all travel allowable.
Claiming mileage without keeping logs.
Claiming travel to long term client sites that have become permanent workplaces.

These mistakes are usually unintentional but still lead to adjustments.

How HMRC enforces travel rules

HMRC often reviews travel claims during enquiries or compliance checks.

Travel expenses are easy to question because they are common and well defined.

If HMRC disallows travel expenses they will adjust profits or taxable income and may charge interest and penalties depending on circumstances.

In my experience HMRC is more forgiving where mistakes are genuine and corrected early.

Practical advice if you are unsure

When in doubt ask yourself a simple question. Am I travelling to do my work or am I travelling to get to work?

If it is the latter it is almost certainly not deductible.

If you have a mixed pattern of work review it regularly. What was temporary can become permanent over time.

Keep good records from the start. Retrospective reconstruction is difficult and stressful.

If your circumstances change get advice. Small changes can affect what you can claim.

The key takeaway

Travel expenses feel intuitive but HMRC’s rules are not always aligned with how work feels day to day.

From experience the biggest problems arise when people assume rather than check.

Understanding the difference between ordinary commuting and business travel is the single most important step.

If you get that right most other decisions fall into place.

If you are unsure about your specific situation it is always worth getting tailored advice. A small clarification now can prevent a much bigger issue later.

If you would like to explore related guidance, you can visit our Bedford Accounting Hub, which brings together practical advice for Bedford clients.