3.18
The 24 month rule prevents a workplace being a temporary workplace where an employee attends it in the course of a period of continuous work which lasts, or is likely to last, more than 24 months.
3.19
A period of continuous work is a period of work throughout which the duties of the employment are performed to a significant extent at that place. For the purposes of operating this rule, we regard duties as performed to a significant extent at any workplace if an employee spends 40% or more of their working time at that place.
The 24 month rule will also apply where an employee’s duties are defined by reference to a particular geographical area. (See paragraph 3.32).
3.20
This means that where the employee has spent, or is likely to spend, 40% or more of their working time at that particular workplace over a period of more than 24 months, it will be a permanent workplace.
Example
Chris has worked for 5 years at her employer’s head office in Warrington. She is sent by her employer to perform duties at a branch office in Wigan for 18 months, after which she expects to return to work in Warrington.
As Chris’ attendance at the temporary workplace in Wigan is expected to last less than 24 months, tax relief is available for the full cost of her travel between home and the temporary workplace.
Example
Duncan has worked for his employer in Sheffield for 10 years and is sent to help out at the employer’s Rotherham branch for 28 months.
There is no tax relief for the cost of travel to and from the workplace. This is because he will be spending more than 40% of his working time there and his attendance is known from the outset to be for more than 24 months so the workplace is a permanent workplace.
His home to work travel is therefore ordinary commuting for which no relief is available.
3.21
The test is whether the employee has spent, or is likely to spend more than 40% of their working time at a particular workplace over a period that lasts or is likely to last more than 24 months.
Where it’s expected that the employee will attend a workplace to perform a task of limited duration or for some other temporary purpose for a period of less than 24 months, the workplace will be a temporary workplace from the outset.
However, if at a later date circumstances change and the employee is required to attend the workplace for a period that extends beyond 24 months, it will stop being a temporary workplace from the date that the expectation changed.
Example
Hassan has worked for his employer for 3 years and is sent to perform full-time duties at a workplace for 28 months.
The posting is unexpectedly ended after 18 months. No tax relief is available for the cost of travel between his home and the workplace, because his attendance is expected to exceed 24 months (though in fact it does not).
The workplace is therefore a permanent workplace and the journey is ordinary commuting.
Example
Richard has worked for his employer for 3 years. He is sent to perform full-time duties at a workplace for 18 months. After 10 months the posting is extended to 28 months.
Tax relief is available for the full cost of travel to and from the workplace during the first 10 months (while his attendance is expected to be for less than 24 months), but not after that (once his attendance is expected to exceed 24 months).
Example
Sarah has worked for her employer for 7 years and is sent to perform full-time duties at a workplace for 28 months. After 10 months the posting is shortened to 18 months.
No tax relief is available for the cost of travel to and from the workplace during the first 10 months (while her attendance is expected to exceed 24 months), but tax relief is available for the full cost of travel during the final 8 months (once her attendance is no longer expected to exceed 24 months).
3.22
For the 24 month rule to apply, both parts of the test must be met; for a workplace to be deemed permanent, the employee must have spent or be likely to spend more than 40% of their working time at a workplace and they must attend it or be likely to attend it over a period lasting more than 24 months.
Example
Edward lives and works in Portsmouth where he is employed as an engineer. His employer sends him to work in Southampton for 1 and a half days a week for 28 months. For the rest of the week he continues to work in Portsmouth which remains a permanent workplace.
In considering whether Edward is entitled to tax relief for travel between home and Southampton it’s important to look at the amount of time he expects to spend there each week and for how long he expects to be in Southampton.
Because he expects to be in Southampton, for less than 40% of his working time, albeit over a period longer than 24 months, and he retains a permanent workplace in Portsmouth, Southampton is a temporary workplace for Edward and he is entitled to tax relief for the cost of getting there and back.
Example
Caroline is employed as a laboratory assistant. She lives in Newport and works in Cardiff. Her employer opens a new laboratory in Swansea. Caroline is sent to work there 4 days a week and expects to be there for 30 months.
She is not entitled to tax relief for travel from home to Swansea because she is spending more than 40% of her time at the new laboratory and expects to be there for more than 24 months. It’s therefore a permanent workplace.
Caroline is not entitled to tax relief for travel from home to Cardiff for the one day a week she goes there because her attendance there is not to perform a task of limited duration or for a temporary purpose. The Cardiff laboratory remains a permanent workplace.
Example
Steven is employed as a financial adviser working in Brighton. His employer sends him to an office in Bournemouth for one day a week over a 10 month period.
He travels to Bournemouth directly from his home in Hastings. Steven is entitled to tax relief for his travel to Bournemouth because he has gone there for a temporary purpose.
He does not expect to spend more than 40% of his time there nor does he expect to be going there for more than 24 months.
Example
Neil is employed as a speech therapist at a hospital in Leeds. His employer sends him to Bradford for 3 days a week to supervise a new department there.
He expects to be in Bradford for 18 months. Neil is entitled to tax relief for his travel from home to Bradford.
Although he is spending more than 40% of his time in Bradford he does not expect to be there for more than 24 months so Bradford is a temporary workplace.
Example
Alan lives in Tewkesbury and has a part-time job working 2 days a week in Cheltenham as a telephonist for an insurance company. He is asked to spend one of his 2 working days covering for a colleague at a branch in Gloucester for a period of 32 months.
Alan is not entitled to tax relief for travel between home and Gloucester because, while he spends only one day a week in Gloucester, this is more than 40% of his working time and he expects to be there for more than 24 months.
Alan is not entitled to tax relief for the journey he makes between home and Cheltenham on the other day he works because Cheltenham remains a permanent workplace.
3.23
Usually it will be clear whether or not an employee expects to spend more than 40% of their working time at a particular workplace over a period of more than 24 months.
Where there is some uncertainty, cases should be decided on their facts. An obvious starting point is what the employee has been told about the length of the assignment. Another point to consider may be whether the employee has moved home as a result of the change in workplace.
An employee may be less likely to relocate for a posting that is expected to last under 24 months than for one that is expected to last longer. That is not to say, if someone does move home as a result of a change of workplace, it necessarily means they expect the new workplace to be permanent, or that if they do not move home they necessarily expect the new workplace to be temporary.
Moving home is not a test, it’s only one factor to consider – but it’s an important one. See paragraph 8.9 of Tax rules on other types of travel and related expenses (Chapter 8) .