New from HMRC: What employers with remote workers need to know about updated guidance.

Article | Matthew Eady | 28th May 2024

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In response to the surge in remote and hybrid working that followed the Covid-19 pandemic, HMRC has made recent updates to their guidance on the tax treatment of travel expenses.

Here’s a breakdown of the current guidance:

  1. No relief for commuting: commuting from home to a permanent workplace doesn’t qualify for tax relief. This means that any cost reimbursed for such journeys is taxable as earnings.
  1. Home as a workplace: Whether an employee’s home is considered a workplace doesn’t affect tax relief eligibility. It depends on whether the journey is necessary for work.
  2. Personal choice vs. job requirement: Even if an employee’s home is a workplace, they are unlikely to get tax relief for travel to a permanent workplace. This is because where an employee lives is usually a personal choice, not an objective requirement of the job.

As employers continue to explore flexible and hybrid work models, it is essential to keep abreast of regulatory changes and compliance requirements. The updated guidelines from HMRC provide some clarity and guidance for those navigating the complexities of remote working arrangements.

If you have any questions about how these changes affect you or your employees, or have any other questions related to employment taxes, please contact us.


This article was correct at time of publication.

About the author

Matthew Eady

Matthew is a Partner in our Employment Tax team. He joined PEM in 2006 and achieved Partnership in 2017.