Your miles can be worth a lot of money when it comes to tax relief. But, your commute is almost never deductible. Be sure to know the HMRC commute definition.
Can I get tax relief for my commute?
No, you usually can't deduct the cost of driving from your home to your workplace. This applies if you're self-employed, an employee or a sole trader. This applies even if you perform much of your work at home.
How does the HMRC define a commute?
The HMRC defines it as the journey made most days between your home and your permanent workplace. "Ordinary commuting" is defined as travel between permanent workplace and home or any other place that isn't a workplace.
What about temporary work locations?
Let's say you're in construction and drive from your house to a new construction site. The HMRC says this is not ordinary commuting and that cost is deductible. If you use your own vehicle, you should use the mileage rates to calculate your tax relief.
When can you get tax relief for a "commute?"
There are several situations where employees can get tax relief for their business miles. You can get tax relief for drives that would otherwise be considered commuting if:
- You travel to temporary work locations
- Your employer requires you to work at home
- You have no permanent office and work throughout a geographic area, like a salesperson who covers a territory
Do I need to track my miles?
The HMRC requires you to keep a mileage log if you want to get tax relief. This means having a record of your business mileage. Using an app like MileIQ can help because it can automatically track, log and calculate the value of your miles.
