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Travel Costs - Deductible or not deductible?

Travel costs – Deductible or not 



Based on a recent case relating to the tax deductibility of travelling expenses,  it ruled that the home office can be recognised as a place of business and a use of home claim allowed, but the travel from that place of business in the home will not necessarily be deductible.

·         If a client has a business base at home, then travel between home and any other place of work will not be allowed if the workplaces are attended on a regular and predictable basis. A permanent workplace.

·         If a client has a business base at home, then travel from home to any non-permanent workplaces should be allowed. A temporary workplace is a workplace to which the client goes only to perform a task of limited duration or for a temporary purpose.

The key issue seems to be whether a journey is to a regular and predictable workplace or travelling from place to place in a comparatively short time.  For that reason it is very important to keep robust records of all business journeys undertaken to establish the individual facts to see if it is a permanent or temporary workplace.

The type of journey that qualifies for tax relief as business travel depends on the way that the person trades and where his business operates.