If you are an employee who pays for business-related travel expenses that your employer does not reimburse, you may be eligible for tax relief.
It’s critical to realise that the regulations governing which travel costs are eligible for tax relief are fairly stringent. The charges of ‘ordinary commuting,’ or the travel between an employee’s home and a permanent office, usually are not eligible for tax relief. Simply put, you cannot receive tax relief if you are not a taxpayer.
Read on to find out how to claim a tax refund.
How Do You Figure Out How Much It Costs to Commute regularly?
Ordinary commuting entails getting from your house to your permanent employment. Ordinary commuting expenses are not deductible for tax purposes.
Travelling to destinations that are not considerably different from typical commuting is also included in ordinary commuting. It implies that if an employee is compelled to visit a workplace and the route they take is roughly the same as the journey to the normal place of work (and at a similar cost), the employee is not eligible to apply for a tax refund.
Are There Any Exceptions to the Regulations for Construction Workers?
If you are employed in the construction industry and are assigned to work at a specific site for a period governed by your employer’s contract, you may have different rules.
Typically, you would work only at that location for that period and only visit your employer’s headquarters on rare occasions. Your travel expenditures to and from home may be eligible for a tax reduction if you anticipate working at that location for fewer than twenty-four months.
Is It Possible to Seek Tax Relief If Travel Is Part of Your Job?
Suppose you are an ‘itinerant’ worker (one who travels as part of their jobs, such as a delivery driver or meter reader, as described above.) In that case, you are entitled to claim tax relief for all your travel expenses, including those from home to work.
If you were an area-based employee, that is, someone whose job tasks are expressly specified by reference to a geographic region, this would be an exception. Even if your employment requires you to travel to other locations in the region, the area might be considered a permanent workplace. Travel expenses to and from your house and inside the area’s boundaries would not be allowed.
Can You Claim Travel Expenses If You Work Between Different Jobs?
If you’re juggling different jobs, you cannot claim travel expenses. Instead, the cost of your trip would be considered everyday commuting expenses.
What Precisely Are You Eligible for Tax Relief If Your Trip Qualifies?
If your trip qualifies for tax relief, you should claim a tax deduction for your travel expenditures, provided your employer does not pay or reimburse the charges (for example, train or bus fares.)
There is a legislative system of tax-free authorised mileage allowances for business travels if you use your transportation for such journeys. You can claim a tax refund for the unused portion of the allowed amount if your company pays less than these amounts (this is known as the Mileage Allowance Relief or MAR system.)
You can also include subsistence (food and drink) and lodging in travel costs where there is an overnight stay. Generally, transportation costs incurred when travelling between work locations are deductible. Travel must be done while earning or creating taxable income. Lastly, calculate to assess and obtain the correct amount for tax reduction or refund.
We can assist you with everything required to claim a tax refund you may have. All UK claims may be calculated using our Tax Refund Calculator. Make an application for a tax refund right now!