Most self employed professionals would probably consider themselves to be familiar with the rules regarding tax deductible travel expenses. However a recent tax tribunal case indicates that HM Revenue & Customs attitude towards this particular area is changing and therefore when preparing this year’s tax return it would be prudent to spend a little bit more time on this area.
The case centred on a self employed professional individual who had a dedicated office at home which was necessary for his professional activity. However whilst undertaking substantive work at home, he also delivered his expertise regularly at another business base, and it was decided that his home office could not be the starting point for calculating his business mileage for his travel to the other business base. This case could have wide implications. Whilst accepting that the professional in question did have a place of business at home, the travel to the second business base was not “wholly and exclusively” for the purpose of the trade as there was a “mixed motive” to the travel, namely the maintaining of a home in a separate location from the second business base. Of course each case should be judged on its own facts, but any professional who works partly from home should at least consider whether or not they are affected by this decision.
If you would like more detail on the deductibility of travel expenses or you have any further questions, please do not hesitate to contact the team on 01733 371180.