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.