We have reported extensively on the highly unpopular restriction of tax relief for travel and subsistence rules which were introduced in April of this year.
Since this came into force it has raised a lot of questions from contractors concerning what expenses are within and what are without the new rules which we have endeavoured to answer.  We had previously advised that travelling between two places each of which is a workplace is still deductible, though this rule is restrictive and home cannot be claimed as a workplace.
However in a recent decision by the First-tier Tax Tribunal it has ruled against the HMRC stating that agency workers who travel between several clients in a working day are entitled to tax relief on their initial travel from their home to the first client and from the last client to their home.
This decision came about due to a case whereby a self-employed person maintained that he should be entitled to tax reliefs because his base was at home.  The tribunal consented that each assignment was deemed to be a separate employment and that he was entitled to tax relief to and from home to assignments.  This decision was based on the acceptance that his home is a permanent workplace and his assignments temporary workplaces, this tax relief would not be available from his home to a more permanent office.
This decision is clearly based on the definition of permanent and temporary workplaces which are extremely complex.  It does however raise the point that the HRMC can be challenged regarding this relief and may very well lead to similar cases.
If you are uncertain of what expenses are eligible for tax relief please feel free to contact us and discuss in depth with one of our administrators who will be able to advice on an individual basis with regards to your personal circumstances.