How Temporary Workplace Relief Works

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When workers are contracted for a short period of time, they will usually be given a temporary workplace. Commonly, this will be of a period that is less than 24 months but it could be a place of work such as a construction project.

HMRC does provide guidance regulations on what it considers to be a temporary workplace. However, every case is reviewed although in general, the tax relief rules dictate that the workplace is a requirement in order for the task or project to be completed. Along with this, it will only be in place for a limited duration while it must be carried out on a temporary basis.

A Temporary Workplace – How Significant is it?

A temporary workplace is quite significant because it means that you have the ability to claim Tax relief on all travel and subsistence costs that relate to travel where a temporary workplace is involved. The rules put in place by HMRC that relate to a temporary workplace relief provides examples of costs that you could claim and this can include mileage costs when using your own vehicle. It will also include all costs associated with public transport as well as accommodation expenses.

Many people believe that the tax relief is applied automatically but this is not the case and so, the Taxpayer has to submit a claim themselves. This can be done by using accountants Birmingham or they can do it themselves.

The process is intricate and care needs to be taken when doing it as it has to be done correctly, especially as a temporary workplace is not as simple or as clear cut as it might seem. The rules from HMRC are not completely clear and so, each case is reviewed individually. To add to the potential confusion, not all business-related travel costs can be claimed for while calculating travel costs can become a problem. Quite often, the claims can run into thousands of pounds which makes getting it right especially important.

If you are a local individual in Birmingham and would like to have free advice about the temporary workplace relief available on your expenses, call one of our office for free advice.

What Can You Claim For?

In the same way as determining whether a workplace is temporary or permanent, the rules that underpin travel and subsistence costs can also prove to be quite complicated. As an example, it can prove challenging to determine what is normal commuting or business travel and that could mean that getting the right assistance can make all the difference. However, there is a general list of items that you can include in the Tax relief claim.

Travel Costs:

  • Mileage covers using your own vehicle
  • The cost of rail cards or season tickets
  • Costs of flight
  • Parking expenses or toll charges

Subsistence expenditure

  • Accommodation that is required as part of working on the project
  • Hotel costs as well as B&B costs

So, making a claim is not as straightforward as it might seem. Therefore, you need to have a clear understanding of what you can and cannot claim for as well as understand the rules that HMRC has put in place. You should make sure that you get the claim right as the amount you claim for can often be a significant amount which could mean that you are better off using the services of an accountant. 

It is never enough to just ask clients about business health. Insufficient knowledge always leads to poor decisions. An accountant should explore a little deeper and inquire about clients business operations, including process flow, the employment process, procurement, customer base, ability to expand and resources available to invest in new equipment and emerging technologies. Only by researching more deeply into a business, an accountant truly is set forth to add value.

Business owners normally would not allow external accountants to engage themselves in business. But as the times have changed, finance directors find it more useful if accountants get involved in business planning and forecasting. Financial Management is highly dependent on the understanding of business operations in sales, marketing, production, operations, administration, human resources, and finance. Any accountant who has got this understanding can then demonstrate the financial implications of their decisions and actions to non-finance business owners and managers.

Businesses do not claim enough R&D tax credits. Too many business owners are unaware that they may qualify. Too many accountants miss opportunities due to a lack of understanding of their client’s businesses. By gaining better experience, an accountant can identify potential R&D tax credit claims. If you’d like to speak with an accountant who will take the time to get to know you and your business and work collaboratively with you to achieve better results, please contact us.

Modern-day accounting firms have become aware that without having business analysts and advisory services, options to increase client base is very limited. Business, on the other hand, do not want to hire a third party business advisory service to look at financial savings and improve profitability. It would work both ways. As Tax Accountants, our job is more extensive as every penny saved will save you more in tax.

Besides that, an accountant who is familiar with your business can help you save money on taxes. Suppose your accountant is not familiar with the day-to-day operations of your business, the nature of your work processes, procurement, billing, and cash collection. In that case, they will be unable to provide you with the support and advice you require. It is critical to understand the activities and relationships of all trading companies when you have more than one.

Not answered above?

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