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  • Working from home – Tax/travel Q
  • JonEdwards
    Free Member

    We’re in the process of moving quite a distance away from work, with the understanding that I can work from home 3 or 4 days/week and be in the office for the remaining 1/2.

    Now I’m in the process of wangling a pay-rise too, but I’m wondering if I can convert that pay rise into the company paying my travel expenses. Looking at the Inland Revenue site, its being cagey about how the tax siutation works. I would claim that my “main place of work” becomes my home, as it’s where I spend most of my time, and the office is then a “temporary place of work”, so I can just claim my travel expenses back (and the company saves a bit of cash as it doens’t have to pay NI on the extra wages). But it doesn’t seem to be quite so clear cut as that…? The time spent “in the office” will also include site meetings and work at other locations.

    So how are you guys doing it? Is there a nice little work around hiding anywhere?

    Cheers,

    Jon

    druidh
    Free Member

    What about pension contributions which you’ll not get on expenses? I’d always opt for getting the salary increase as they can’t really take that away from you (easily) whereas the place of work arrangements could change at a whim (e.g.new manager)

    Rubber_Buccaneer
    Full Member

    My concern would be that the office is not a temporary place of work it is a permanent place of work that you only attend once or twice a week. Why not ask HMRC? A straight payrise would be simpler.

    gusamc
    Free Member

    also check house insurance, local authority regs and H&S issues round house becoming office, or a place of work ……………….

    uplink
    Free Member

    AFAIK

    If you’re contract states that you are based from home then any travel to offices is business mileage and can be claimed
    That’s how it’s worked for me for the last 5 or 6 years

    I did have a full tax investigation a couple of years back and the Gestapo didn’t query it at all

    Zulu-Eleven
    Free Member

    Not a permanent workplace as you spend less than 40% of your time there, so you can therefore claim travel to the office, but as I read it, only if the visits are for specific temporary tasks, if not, then in theory both locations could be permanent workplaces, and no travel expenses.

    http://www.hmrc.gov.uk/manuals/eimanual/eim32080.htm

    http://www.hmrc.gov.uk/manuals/eimanual/EIM32087.htm

    craigxxl
    Free Member

    Uplink states the rule correctly however if you are required to attend the office on regular set periods then it is classed as commuting and can be claimed as business mileage.
    If running an office from home don’t forget to claim the expenses of running it on your tax return. H&S, house insurance etc don’t normally come into the equation if you are doing desk bound work but check that your business equipment i.e. laptop, routers and the like are covered.

    craigxxl
    Free Member

    Zulu-Eleven, the link you have provided is for temporary places of work i.e. secondment to another office. As the OP has stated he is moving further from his work office so not a temporary location.

    simon_g
    Full Member

    I’m based from home (according to my employment contract), and depending on workload that could mean 5 days a week out at customer sites, 5 days at home, or 5 days in the office. If I leave my front door, I claim travel expenses. Works out quite nicely.

    No issues around tax, etc but then my visits to the office are not regular enough to count as anything but a temporary place of work.

    br
    Free Member

    If running an office from home don’t forget to claim the expenses of running it on your tax return.

    even if self-employed/contractor anything over £1 is ‘frowned’ upon by HMR&C now…

    craigxxl
    Free Member

    BR, you should use a good accountant then. We always have a home office charge when home based and never get them queried by HMRC but then we also back them up with actual costs.

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