In a recent statement, HM Revenue & Customs (HMRC) has clarified travel from an employee\u2019s home to their base office under a hybrid working arrangement does not qualify for tax relief.<\/p>\n
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As hybrid working arrangements continue to be common for office-based workers, many have argued that journeys to the office should be classed as a \u2018journey in the performance of the duties of employment\u2019.<\/p>\n
These travel expenses typically qualify for tax relief for employees on costs incurred as a result of carrying out essential duties.<\/p>\n
However, commuting to and from the workplace \u2013 unless it is a temporary workplace \u2013 does not qualify for tax relief.<\/p>\n
In an explanation of the updated guidance, HMRC stated that an employee\u2019s home is down to their personal choice \u2013 meaning the cost of travelling between home and work is a personal expense, \u2018not an objective requirement of the job\u2019.<\/p>\n
However, HMRC further clarified that, when an employee performs \u2018substantive\u2019 duties from home, such as on a primarily remote contract, then they may be entitled to tax relief of costs for travelling to the office.<\/p>\n
If such travel is for the purpose of the performance of duties, such as if it is contractually obligated, then tax reliefs on costs incurred may apply at a rate of:<\/p>\n