Sarah Bradford explores how the rules governing deductibility of travel expenses apply to hybrid workers.
The rules governing the deductibility of travel expenses predate the concept of hybrid working. Consequently, their application to hybrid workers is something of a less-than-perfect fit. The tax implications of travel expenses incurred by hybrid workers, and in particular whether a journey is a business journey or ordinary commuting, will not always be clear, and the correct treatment will depend on whether HMRC accepts that an employee’s home is a workplace. Depending on the nature of the employee’s working arrangements, this may be different on different days of the week.
Further, the extent to which an employee has a choice of where they work will also impact on whether a deduction for travel expenses will be forthcoming.
To help employers navigate the maze, HMRC has recently updated the
