HMRC clarifies tax rules for WFH commuting

09.05.2024
The Marketing Team
Tax
Person working from home

HMRC has updated guidance on when tax relief is available on travel expenses for staff who work from home.

Person working from home

The tax authority is responding to the growth of flexible or hybrid basis working contracts, particularly since the Covid-19 pandemic.

HMRC guidance states that ‘under such arrangements, the employee will have a base office and journeys from home to that location will be ordinary commuting’.

These trips are not eligible for tax relief.

Whether or not an employee’s home is a workplace does not affect the availability of tax relief for travel expenses.

Travelling from home to a permanent workplace is classed as ordinary commuting and not available for tax relief.

HMRC states:

‘Even though it may have been accepted that the employee’s home is a workplace, it does not necessarily follow that they’ll be entitled to tax relief for the cost of travel between their home and a permanent workplace.’

This is because even where working from home is part of the employment contract, this can be due to personal choice and not a requirement of the role. In such cases, travel from home to the office remains private travel.

Travel costs from home to a temporary workplace remain available for tax relief.

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