Travelling Allowance for Construction Employees UK

General rule is if  the employee has spent or is likely to spend more than 40% of their working time at a workplace for a period which lasts or is likely to last more than 24 months then place will be his permanent workplace. In the construction industry workers will be moved from site to site on a regular basis by their employers. Under the circumstances, where the employee’s
attendance at the site is not expected to last longer than 24 months it will be considered a
temporary workplace and tax relief will be available to the employee for the cost of travel and subsistence incurred in travelling to that site.

There is another case when an employee is initially expected to work for a period
of less than 24 months but later employer needs to extend the period to longer
than 24 months, it will be a temporary workplace up until the date that the period is
extended, after which it will be a permanent workplace.

HMRC has given an example for the above mention situation:

Susan is employed as a human resources consultant. She expects to spend all her working
time at a client’s site for 23 months. She works full-time at the client’s site for 17 months
developing a new staff appraisal system and then deals with unexpected priority work
elsewhere for 3 months. She then returns to the client’s site for a further 6 months to
co-ordinate the roll-out of the new system.
Susan is entitled to tax relief for her travel from home to the site during the first
17 months because she does not during that time expect to be at the site for more than
24 months. She is not, however, entitled to tax relief for her travel from home to the
client’s site for the further 6 months. That is because she now expects to spend 23 out of
the 26 months at that site, which will be more than 40% of her working time over a period
longer than 24 months.

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