What is the 24 month rule for mileage?
This is part of HMRC’s definition of what makes a workplace ‘temporary’ and therefore entitles the taxpayer to travel expenses.
Definition of a temporary workplace
A ‘temporary workplace’ is either somewhere you work that is of ‘limited duration’ or for a ‘temporary purpose’, according to HMRC’s definition.
In simple terms, this means that if you spend 40% or more of your working time at a location for more than 24 continuous months it becomes a permanent workplace and you are not entitled to claim travel expenses.
HMRC consider that 40% or more of your working time constitutes ‘duties as performed to a significant extent’. If you spend this time at a workplace for less than 24 months, then it is a ‘temporary workplace’ and you are entitled to claim travel expenses.
I’ve moved workplaces a few times, but they are all near each other…
HMRC are able to apply discretion to the ‘temporary workplace’ definition, if your journey to work from home remains more or less the same, even after a change in location.
For example, if you are sent to work in the office down the street, this would probably not be considered a ‘temporary workplace‘, even if you were only working there for a few months.
What if the expected length of the posting changes?
The length of job postings are not set in stone and the travel expenses rules take that into account. It all comes down to the initial ‘expectation’ you are given by your employer.
For example, if you start off with a secondment of 28 months, but this gets cut short to 20 months, you are not able to claim travel expenses. The initial expectation was for a ‘permanent’ job posting, regardless of whether or not this translates into reality.
Likewise, if your initial contract is for less than 24 months, making it ‘temporary’, and is then extended you can still claim travel expenses for the ‘expected’ time (but not the subsequent months that go beyond the allotted 24 months).
If you have other questions about tax reliefs and allowances, check out our Income Tax FAQs section for the answer.
Mileage tax rebate: how to claim
If you have confirmed your temporary workplace status you are ready to start the process of claiming. The quickest and most straightforward way to make your claim is using HMRC’s own online process.
- Fill in a self assessment tax return if your claim is valued at £2500 or more or a P87 form and send your mileage claim right to HMRC.
- HMRC reviews your application, looks at your mileage records if necessary, and decides how much income tax rebate you’re owed based on your mileage expenses.
- HMRC send your mileage tax refund straight to you.
It’s definitely wise to get your mileage paperwork together before you start a claim. Also worth knowing that HMRC’s turnaround time will vary, depending on their other workload. But they’ll let you know approximate timescales when they receive your mileage claim.
