Clients often get confused as to which work travel expenses may be allowable or not. The following article is going to highlight the common items that I often have to clarify with clients. You may be reading this from various perspectives, as an employee, a sole trader or an owner/director of a limited company, I will try to cover some of the different aspects of travel expenses that may be relevant to you.
Place of work
As an employee you will not be able to claim your travel costs to your main place of work, therefore it is important to understand where your main place of work is. Increasingly some employees place of work may be their home, as they may be home-based employees. If this is the case for you then you may be able to claim travel costs from your employer if you occasionally have to attend a meeting one of your employer’s offices/premises.
How much you can claim is up to your employer, as it is up to the business’s travel policy as to what they will reimburse you for. Currently the basic mileage allowance is 45p per mile, however, some companies may have a policy where they only reimburse a smaller amount e.g. 25p per mile and rarely some businesses may reimburse at a higher rate. If they reimburse at a higher amount you will be subject to a benefit in kind tax, and the excess will appear on your P11D.