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Where Taxpayers and Advisers Meet

Mileage for employees to place of study

Michael1
Posts:1
Joined:Thu Mar 09, 2017 10:34 pm
Mileage for employees to place of study

Postby Michael1 » Thu Mar 09, 2017 10:37 pm

Hi,

I'm currently employed as a Trainee chartered accountant and work in a local office. However when I have to study towards becoming chartered, I have to drive 200 miles in my own car to get to the place of study and my employer doesn't pay any mileage.

Currently many other students travelling to this place of study from different firms get paid mileage.

My question is can I claim this mileage as an employee expense? I know it has to be wholly, exclusively and necessarily in the performance of the duties of the office or employment, but I think this depends on how you argue this case?

A couple of people I work with have claimed this currently, as an allowable expense. But when I tried to claim this they want a letter from my employer stating why they do not pay any contribution towards the mileage. I've considered just ringing HMRC and trying to argue my case, but I wasn't sure on the best course of action.

Any advice would be helpful or a link to other articles covering this topic.

Thank you

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Mileage for employees to place of study

Postby bd6759 » Sat Mar 11, 2017 12:35 pm

There is no wholly and exclusively test. For an employee travel expenses are allowed for any travel necessarily incurred in the performance of the duties of the employment (s337 ITEPA 2003) and for any travel expense necessarily incurred for attendance at any place of work, except for normal commuting (s338).

Your travel to the training place is most likely to be covered by s338 (presuming you attend there for a task of limited duration or some other temporary purpose). There are 2 test to consider. Will your attendance be there for less than 24 months? If so, it is likely to be a temporary place. If it is for more than 24 months, the first test is whether it is for some temporary purpose - that is, will it cease at some point. I beleive that will be a yes because it will cease once you are trained. The second test is whether your attendance is for a signifance amount of your time. HMRC use 40% as a rule of thumb. If you attend there for less than 2 days per week on average it will be OK.

HMRCs request for a letter is nonsense. The reasons why an employer does not pay a particular expense are irrelevant. I would simply tell them that is not their policy to refund these expenses and that does not bar you from making a claim. If they persist, ask to speak with someone more competent.

You'll find guidance here https://www.gov.uk/hmrc-internal-manual ... l/eim31800

and here https://www.gov.uk/government/publicati ... nics-guide

AmanSood
Posts:216
Joined:Mon Jan 09, 2017 4:12 pm

Re: Mileage for employees to place of study

Postby AmanSood » Sat Mar 11, 2017 8:24 pm

I have a different view to bd6759. The location you are attending is not a temporary workplace as you are not working there but studying. This would count as work related training and would be exempt if the Company reimbursed the travel to the study place (s250 ITEPA). However, if the Company chooses not to reimburse these expenses, then unfortunately you won't be able to get a deduction for these expenses.
Advising on UK employment, expatriate and personal taxes
aman.sood@e-taxconsulting.com.
+44 (0) 207 846 0155

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Mileage for employees to place of study

Postby bd6759 » Sun Mar 12, 2017 12:15 am

He is emplyed as a trainee, which will involve training.


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