The general rule applies that there is no tax relief for the ordinary commute to work. The term ‘ordinary commuting’ is defined as the travel between a permanent workplace and home or any other place that is not a workplace. It has also been confirmed that travel between home and a permanent workplace is ordinary commuting even where home is also a workplace.
So, this means that there is no deduction for the cost of travel between an employee’s permanent workplace and:
- An employee’s home (with limited exceptions),
- Any other place the employee visits for reasons that are not related to the employment,
- Any place at which the employee performs the duties of another employment.
Any journey between an employee’s permanent workplace and home is ordinary commuting for which no deduction is due.
The rules differ slightly for temporary workplaces where the expense is allowable. A workplace is defined as a temporary workplace if an employee goes there to perform a task of limited duration or for a temporary purpose.
There are specific exemptions from tax for works bus services, the provision by an employer of bicycles and cycling equipment in order to encourage environmentally friendly transport between home and work.
If you have any questions about tax deductions and commuting to and from work, then please get in touch.