What is a temporary workplace?

If you are employed and have to travel because of your job to different places you could have a temporary workplace.

It’s important to understand what a temporary workplace is, because you could be entitled to claim a tax rebate for the cost of your travel. You can claim for both use of your own vehicle or public transport.

Do I have a temporary workplace for mileage?

This is the crucial bit, what you consider to be temporary and what HMRC thinks is temporary can often be two very different things.

If you get it wrong it can waste your time and, in some cases, means you try to claim back tax that you are not owed.

HMRC temporary workplace:

For tax purposes a temporary workplace is a site or building which an employee attends for a length of time which lasts, or is expected to last, for less than 24 months. If an employee performs their duties to a significant extent at one workplace, for more than 24 months, this can be classed as a permanent workplace.

HMRC permanent workplace:

If you have a permanent workplace you cannot claim for a tax rebate on your travel costs. A permanent workplace is generally classed as a site or building where you work at for 40% or more of your time. There are other scenarios when a workplace can be classed as a permanent workplace for example when you travel within a defined geographical area and you do not have a permanent workplace.

Temporary workplace tax rebates

If you have a temporary workplace and you aren’t reimbursed in full by your employer (or any travel you have been paid is taxed) you can claim for the cost of your travel when using your own car, van, motorbike or public transport.

A claim can be back dated for the last four tax years meaning you could be owed a substantial tax rebate.

How much is a temporary workplace tax rebate worth?

The amount you can claim back depends on the number of miles you drive (or cost of public transport) and if you are reimbursed by your employer.

You can use our free mileage tax rebate calculator to work out what your mileage claim could be worth. Other factors can affect how much you may be eligible to reclaim, like how much you earn and the amount of income tax you’ve paid.

Claim your temporary workplace tax rebate

You might have to wait a while, but claiming a mileage tax rebate isn’t that complicated. You fill in a P87 form, or a self assessment tax return, and HMRC does the rest. Its easier and quicker to make your claim online, but there is a postal option in certain situations.

HMRC will:

• Review your claim and they can ask to check your mileage records at this point, so have them ready.
• Let you know their current mileage tax refund processing times.
• Send you any income tax overpayment you’re due back because of your mileage expenses.

Here’s the HMRC P87 form link you need to get started.