Your normal commute to work isn’t business travel, but if you have to travel to visit a customer or visit somewhere on business then that is business travel.
Triangulation happens when you leave home on a valid business journey, but then return to your normal place of work, then travel home.
The travel between home and your normal place of work isn’t business travel.
You could avoid triangulation by not returning to your normal place of work, then the whole journey would be business travel.
If you are required to do training, that travel will count as business travel.
This can get even more complicate if you work from home.
On the 16th December 2013 Dr Samad Samadian v HMRC had his appeal on Travel heard by The honourable Mr Justice Sales and it was decided to uphold the previous decision of the First Tier Tribunal.
After an enquiry lasting more than seven years and three tribunal hearings, the First-tier Tribunal led by Judge Kevin Poole acknowledged Dr Samad Samadian had a dedicated office in his home which was necessary for his professional activity.
However, the panel did not accept that the home office could be treated as the starting point for calculating private practice business mileage involving habitual journeys.
So in summary:
Home to Hospitals – Disallowed
Hospital to Hospital – Disallowed as Business Expenses (but could be allowed against Employment)
On the 16th December 2013 Dr Samad Samadian v HMRC had his appeal on Travel heard by The honourable Mr Justice Sales and it was decided to uphold the previous decision of the First Tier Tribunal.
After an enquiry lasting more than seven years and three tribunal hearings, the First-tier Tribunal led by Judge Kevin Poole acknowledged Dr Samad Samadian had a dedicated office in his home which was necessary for his professional activity.
However, the panel did not accept that the home office could be treated as the starting point for calculating private practice business mileage involving habitual journeys.
So in summary:
Home to Hospitals – Disallowed
Hospital to Hospital – Disallowed as Business Expenses (but could be allowed against Employment)
Visits to Patients – Allowed
Now would be a good time to check your tavel mileage claims to makesure they are valid.
Apart from Business Mileage, what can you claim and what counts as a business trip?
Assuming your employer or supplier or customer aren’t reimbursing your costs….
If you’ve got to make journeys for business purposes you can deduct your travelling expenses from your taxable income – so you’ll pay less tax.
In addition, there is no restriction on the standard of travel and accommodation, provided the main purpose of the trip is that of business, you can travel first class and stay at the best hotels.
But what if the trip is partly business and partly pleasure, in this case you will need to apportion the costs and only claim for the business element.
You can only get tax relief on the cost of business journeys. These are when, as part of your job:
you have to travel from one workplace to another – this includes travelling between your main ‘permanent workplace’ and a temporary workplace
you’ve got to travel to or from a certain workplace because your job requires you to
But business journeys don’t include:
ordinary commuting – when you travel between your home (or anywhere that is not a workplace) and a place which counts as a permanent workplace
private journeys – which have nothing to do with your job
If you’re not sure if a place you travel to counts as a permanent workplace telephone HM Revenue & Customs for advice.
Travel expenses include the actual costs of travel and also the subsistence expenditure and other associated costs that are incurred as part of the cost of making the journey.
The cost of business travel includes
the cost of any necessary subsistence costs incurred in the course of the journey
the cost of meals necessarily purchased whilst an employee is at a temporary workplace.
If an overnight stay is needed then the cost of the accommodation and any necessary meals is part of the cost of business travel. Even where an employee stays away for some time and the travel expenses are deductible, the cost of meals and accommodation is part of the overall cost of the business travel.
Travel expenses that qualify for relief
You can get tax relief on the necessary costs of business travel like:
public transport fares
hotel accommodation
meals
tolls
congestion charges
parking fees
business phone calls, fax or photocopying costs
But you can’t get tax relief for things that aren’t directly related to the business journey.
So far so good, but what about…..
Alcohol – claiming for a few drinks with your meal will be fine but other than with meals they would generally be considered a personal expense
Your Family – if you take your wife, husband or partner on a business trip their costs will be taxable unless they are on the trip for a business reason
Newspapers, Laundry and Phone Calls Home – HMRC allow claims for incidental overnight expenses up to £5 per night in the UK and £10 per night outside the UK
