The 24-Month Rule: What It Means for Your Travel Expenses

Travel costs can be a significant business expense, and many are tax-deductible — but not all. One important HMRC guideline to understand is the 24-month rule. Here’s what it means and how it applies to you:

What Is the 24-Month Rule? The rule states that if you work at a location for more than 24 months, it is no longer considered a 'temporary workplace.' Therefore, travel to and from this location becomes a personal commute and is no longer tax-deductible.

Temporary vs. Permanent Workplace

• A workplace is considered temporary if you attend it for a limited duration or for a specific task.

• It becomes permanent if your attendance exceeds 24 months or if it represents your normal place of work.

Why Is This Important? Claiming travel expenses incorrectly can result in a tax investigation and financial penalties. It’s essential to:

• Track how long you’ve worked at each site

• Avoid assuming that all travel is deductible

• Seek advice when contracts or work locations change

Exceptions to the Rule In some cases, you may return to the same site for a different client or project. If the nature of work has changed, the 24-month count may reset. Each scenario should be reviewed on a case-by-case basis.

What Can You Claim? If the travel qualifies, you can claim:

• Mileage for business journeys

• Public transport fares

• Parking charges

• Accommodation if overnight stays are required

Working with an accountant helps ensure that you remain compliant with HMRC rules while maximising your allowable deductions. Always keep accurate logs of your travel to substantiate your claims.