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Objective TMC Business Mileage FAQs (v6 04.08.21 )

The objective of this guide is to advise company car drivers on claiming business mileage. It will define what journeys can be
claimed and what should not claimed.

Key Guidelines
 Company Car drivers must only claim the mileage for journeys that are covered by the definition of ‘business mileage’
 No claim can be made for journeys covered by the definition of ‘home to work commute’ or ‘private’ mileage
 If these key guidelines are not followed, an employee’s expenses become taxable as a ‘Benefit in Kind’ (HMRC
terminology for when an employee financially benefits from something offered by their employer)
What journeys are classed as ‘business mileage?’

 Journeys which employees have to make in the performance of their daily duties
o This may include journeys to/between locations occupied by customers of your employer
o It can also include journeys to/between locations owned by your employer
o Any other location that your employer requests you attend – customers, suppliers, trade shows or similar
o No journeys classed as ‘home to work’ commute or other private mileage can claimed

What is the Home to Work commute and Private Mileage?
 Journeys between an employee’s home, or somewhere that’s not a workplace, and a “permanent workplace”.
 “Somewhere that is not a workplace” can refer to any location that you travel “to the job” from, this may include
houses belonging to friends or family or other locations that you have stayed at for personal reasons’ as well as
locations such as gyms
 ‘Private Mileage’ covers any journeys completed by the employee that are not connected to their employment. This
may involve journeys during the employee’s lunchtime for personal reasons or those completed outside of working
hours.
 If you call at a customer who is located on your normal home to work commute, this still cannot be claimed as a
business journey. The same applies if the employee participates in a conference call or makes business phone calls
during the journey.
 The rules of not claiming the “home to work” commute still apply to colleagues who have transitioned to agile working,
are working from home and work from head office less frequently.
What is a Permanent Workplace?

 “Permanent workplace” is defined as being a location that they attend regularly for the purposes of work and which is
not a “temporary workplace”.
 Colleagues, who were previously based at a head office location but are now working from home, will still regard head
office as their permanent workplace.
 HMRC defines a permanent workplace or ‘base location’ based on the actual movements of an employee and not on
any special written agreements or contractual agreements.
 Business Mileage for journeys to a permanent workplace cannot be claimed if the journey is covered by the ‘Home to
Work’ commute definition
 The journeys can be claimed if they are between a temporary workplace (see below) and the permanent workplace

What is a Temporary Workplace?

 A ‘Temporary Workplace is where the employee is attending the workplace for a limited duration or a “temporary
purpose”
 These ‘temporary workplace’s’ can be sites owned by your employer, customers or other related locations
 Business mileage can be claimed for journeys to a ‘temporary location’ as long as no pattern is established that would
turn this into a ‘Permanent Workplace”.