Claim Tax Relief on Employee Travel Expenses

As an employee, there are several things that you are able to claim tax relief for that are related to your work. In order to be able to claim tax relief on them, they must be things that your employer has not already reimbursed you for and isn't planning to.

Employee Travel Expenses 

In the normal course of things, employees can't claim a tax refund on their day-to-day commute to and from work. However, employees who are temporarily based at a particular site that is different from their normal place of work may be able to claim a deduction in their tax for travel to and from that temporary place of work. When they stay overnight near their temporary workplace in a hotel, they may also be able to claim overnight accommodation and subsistence costs.

If an employee wishes to claim tax relief for these work-related expenses, they should keep the details, receipts etc for up to four years.

Claim Tax Relief

Employees will only be able to claim tax relief on their work expenses if they have paid tax in that particular financial year. The way to claim tax relief is through completing a self-assessment tax return and by using this to provide information on the claim that is being submitted.

In addition to employee travel expenses, accommodation and sustenance, it is also possible to claim tax relief on other items that you are required to buy that you will only use in the course of your work.

These items can include work uniforms, clothing and tools, but only where the employer is not willing or able to reimburse the employee for the purchase of these. If you use a vehicle in the course of your work, for example as a delivery driver, you may be entitled to claim tax relief on the approved mileage rate, which is 45p per mile on the first 10,000 miles driven for work in a car or van and 25p thereafter. There are different rates for other vehicle types.

You are not able to claim tax relief on your vehicle mileage if you are simply driving to your regular place of work. If you are driving to a temporary place of work, it is possible to claim tax relief on your mileage.

The percentage of tax relief that an employee is able to claim will depend on the tax rate that they are eligible to pay. If an employee is on a tax rate of 20%, they will be able to claim that percentage back in tax on their travel, accommodation and subsistence expenses.

Accountants in Harrow

Lawrence Grant is an accountancy firm based in Harrow, with clients all over the world. We are experts in giving advice that meets all of your accountancy needs. For tax advice and guidance call us today at +44 (0)20 8861 7575 and we will be happy to do what we can to assist you.