Travel expenses are common, and people with multiple jobs can claim tax deductions. When you have travel costs between your different workplaces, you can deduct these from your taxable income. This can help lower your overall tax bill. Here is a guide to claiming tax relief on travel costs when you have more than one job:

The Basic Rule 

Travel costs are deductible if incurred “wholly, exclusively and necessarily” for work purposes. This means travel between your home and normal place of work is not deductible. However, travel between your workplaces or from home to an occasional workplace can be deducted. The key is that travel must be necessary to do your work.

Record Keeping 

To claim tax relief on travel, you must keep detailed records of your expenses. For each journey, record the date; the miles travelled, the reason for travel and the cost (if using public transport). A logbook or spreadsheet is ideal for this. Keep hold of tickets, receipts and invoices as proof of the amounts you are claiming.

Allowable Expenses 

Allowable expenses include:

• Fuel costs for using your vehicle
• Public transport fares
• Parking fees
• Road tolls
• Taxi fares
• Meals if travelling overnight for work
• Accommodation if travelling overnight for work

You can claim a mileage allowance per business mile travelled in your vehicle. The current HMRC-approved rate is 45p per mile for the first 10,000 miles, then 25p afterwards. Make sure to exclude normal commuting miles to your main place of work when calculating this.

Calculating the Deduction 

Add all your allowable travel expenses for the tax year to calculate your Deduction. The next step is determining the proportion related to your self-employment or additional employment.

For example, if you travelled 800 business miles and 200 were related to your self-employment, you would calculate 25% of your total vehicle expenses as deductible. The Deduction is claimed on your Self Assessment tax return. As long as adequate records are kept, reasonable travel costs can be deducted without any problem.

Rules for Salaried Employees 

Employees cannot claim tax relief for travel home and normal workplaces. However, travel between these can be deducted if you have multiple workplaces with the same employer. Make sure to follow the record-keeping requirements.

The process is to claim tax relief on qualifying travel by completing form P87 and submitting online or by post. The expenses are deducted from your taxable pay by adjusting your PAYE tax code.

Contractor Rules 

Contractors who get work through agencies at multiple locations can also deduct travel costs between assignments. You should claim these expenses on your Self Assessment return as part of your allowable business deductions. Keep all records and only claim the proportion of expenses related to your contracting work.

Public Transport Costs

Record your ticket purchases and journeys if you rely on public transport between workplaces. Bus, train and metro fares can all be deducted as allowable travel expenses. However, season tickets that cover private travel cannot be claimed.

Overnight Stays 

Sometimes, a distant workplace may require staying overnight. In this case, keep receipts for accommodation and meals to claim these costs back. There are set HMRC subsistence allowances for meals based on the time spent away.

Using the Same Vehicle for Personal Use

Many people use the same vehicle for work and personal journeys. In this case, work out the total business mileage for the year and calculate the proportion of total running costs that this represents. Only claim this percentage of your total vehicle costs.

Declaring Travel Expenses

All allowable travel expenses claimed during a tax year must be declared on your Self Assessment return or employment expenses form. It is against tax rules to claim for personal travel or make false expense claims. HMRC can impose financial penalties and prosecution for tax evasion, so declare truthfully.

Combining Commuting and Business Journeys

Where possible, aim to combine business and commuting miles rather than making separate trips. For example, travel directly from your home to the occasional workplace and then onto your normal place of work afterwards. This saves costs and makes tax relief simpler to calculate.

Travel Abroad

When you travel abroad for work, keep all records as usual and claim genuine expenses. There are specific rules for meal allowances and mileage rates in foreign countries. Check current HMRC guidelines to ensure you claim the correct amounts.

Claiming tax relief on qualifying travel is a legal way to lower your overall tax bill if you have costs travelling between workplaces. But follow the rules carefully, keep proper records and only claim relief on genuine business journeys, not normal commutes. With good record keeping, multiple job holders can get a tax benefit by deducting allowable travel costs.

Consult our tax advisors for assistance determining what expenses are deductible and how to calculate and claim them on your tax return.