3.28
The fixed term appointment rule prevents a workplace being a temporary workplace where an employee attends, or is likely to attend, it in the course of a period of continuous work for all or almost all of the period that they’re likely to hold the employment.
A period of continuous work for this purpose has the same meaning as it does for the 24 month rule – that is it’s a period during which the employee spends or is likely to spend more than 40% of their working time at a particular workplace.
For the purpose of operating the fixed term appointment rule we regard a period as being all or almost all of the period that the employee is likely to hold the employment where that period is more than 80% of the likely duration of the employment.
This means that the test is whether the employee has spent, or is likely to spend, 40% or more of their working time at that particular workplace for more than 80% of the likely duration of the employment.
The fixed term appointment rule will also apply where an employee’s duties are defined by reference to a geographical area. (See paragraph 3.32).
Example
Mike is taken on for a fixed term employment of 18 months to work at a particular site. No tax relief is available for the cost of travel to and from the site during that period.
Example
Laura is employed as a research scientist on a fixed term contract lasting 15 months. Most of her work is to be done in research laboratories in Upminster but to familiarise her with equipment which is new to her, her employer first sends her to the manufacturer’s premises in Inverness.
Laura is entitled to tax relief for her travel to and from Inverness, but not for her travel from home to and from Upminster because it’s the place where she will carry out duties for almost all of her employment.