Contractor travel expenses guide

New year often spells ‘new contract’ or ‘new workplace’ for contractors, who, if they can justify any cost they incur as a travel expense, shouldn’t be shy about claiming it, writes Bob, the retired tax inspector

HM Revenue & Customs looks at travel expenses claims on a case-by-case basis in relation to rules it introduced on April 6th 1998.  As this downloadable guide makes clear, the broad aim of the rules is to grant (with certain restrictions) home-to-work travel expenses for those workers who, within their employment, work at a succession of temporary workplaces.

As you might expect, the taxman does not allow unrestricted relief (see the section on the 24-month rule) and a workplace cannot remain temporary indefinitely. However, it is the status of the workplace, within the employment, that is the determining factor as to whether your travel expense is allowable in the eyes of HMRC. Knowing your workplace’s status, and being careful to avoid the anti-avoidance mechanisms at play, can ensure your travel expenses continue to qualify and should help keep a cash-hungry taxman from your door.

Download CUK’s Contractor travel expenses guide, by Bob, the retired tax inspector, here.

Editor’s Note: Further Reading –

Contractor Mileage Log – Free template
Contractors’ Questions: What about expenses if I extend?

Thursday 12th Jan 2012