Summary of Temporary Workplace Rules from HMRC Guidelines:
Rule Description
Definition of a Temporary Workplace A temporary workplace is a location where an employee works for a limited duration or specific task. It is not their main, permanent place of work. An employee sent to a client’s office for a 6-month project qualifies as working at a temporary workplace.
24-Month Rule If an employee works at a site for more than 24 months, it becomes a permanent workplace, making travel expenses ineligible for tax relief. An employee on a project expected to last 18 months can claim travel expenses. If the project is extended beyond 24 months, claims are disallowed.
Change in Work Pattern The 24-month rule resets if there is a significant change in duties or a break between assignments, making it possible for a new assignment to be classified as temporary. If an employee finishes a project and takes a 3-month break before starting a new assignment at the same location, the rule resets.
40% Rule If the employee spends 40% or more of their working time at a location, it is treated as a permanent workplace unless the stay is expected to be less than 24 months. An employee spends 2 days per week at a client’s office (40% of a standard 5-day week). If this continues for over 24 months, it’s considered permanent.
Ordinary Commuting vs. Business Travel Ordinary commuting (travel between home and a permanent workplace) is not deductible. However, travel to a temporary workplace is considered business travel and may be deductible. An employee traveling from home to the head office cannot claim expenses, but if they travel from home to a temporary client site, they can.
10-Mile Rule Though not explicitly listed in the manual, this guideline often refers to travel that significantly exceeds normal commuting distances, typically used in determining temporary status for certain claims. If an employee’s normal commute is 5 miles, but they travel 15 miles to a temporary work site, they may be eligible for travel expense claims.
Fixed-Term Appointments Employees on a fixed-term contract for a specific project lasting less than 24 months can treat the site as a temporary workplace. A contractor hired for an 18-month IT project at a specific client site can claim travel expenses.
Multiple Workplaces When an employee has more than one workplace, specific rules apply to determine which are temporary and which are permanent based on factors like duration and frequency of visits. A sales executive visiting different client sites monthly can claim travel expenses as these are considered temporary workplaces.
The information provided in the table is based on HMRC’s guidelines for employment income, particularly around travel expenses and temporary workplaces. This data has been summarized from general knowledge and guidance available in HMRC’s Employment Income Manual (EIM32000 series), particularly sections discussing the 24-month rule, the 40% rule, and definitions related to temporary workplaces.
For authoritative details, you can refer to the official HMRC manual on the topic: HMRC Employment Income Manual (EIM32000).