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RIFT Tax Refunds was founded in 1999 to help people get tax relief on their job related expenses. Most of this will be for travel to temporary workplaces - but things like tools, specialised clothing, food and accommodation can also be included. What RIFT does is work out whether people can claim back tax from HMRC, and how much the taxman owes them.

RIFT Tax RefundsTax Refunds

Permanently employed people who pay to travel to temporary workplaces are entitled to some tax back on their work related expenses. They can claim this whether they use their own vehicles, public transport or even a company vehicle. As long as they're paying for the fuel or tickets themselves, they're owed some tax back from HMRC. They can also claim back tax if you've made transport available to them, but they've opted to make their own way to their temporary workplaces.

Temporary workplace rulesWhat is a ''temporary workplace''?

Under HMRC's rules, a normal commute to a permanent workplace wouldn't qualify someone for a tax refund. A temporary workplace, by contrast, is somewhere you would generally expect to attend for less than 24 months.That might include a construction site, military base or offshore rig, for instance. It doesn't matter what industry you work in. As long as you expect to be at a workplace for under 24 months, you're eligible to claim.

There are a few wrinkles in the rules, of course. Some people end up at a workplace for longer than they originally expected, for example. Others might find an entire geographical area classed as their workplace, rather than a specific site. RIFT clarifies exactly what travel qualifies for a tax refund, and makes sure that all of HMRC's rules are being followed.

Travel expensesWhat are people able to claim back for their travel costs?

If someone's using public transport for their work travel, they can have tax refunded for their ticket costs. For road travel in their personal vehicles, there are Approved Mileage Allowance Payments (AMAP) set by HMRC. AMAP rates take things like vehicle wear and tear into consideration as well as the obvious fuel costs.

Travel expensesI already contribute toward my employee's travel costs. Can they still claim?

If you're giving your employees any untaxed travel expenses, that can affect what they can claim back from HMRC. If you're paying them less than the AMAP rates, though, they can still claim back the difference as a tax refund. AMAP rates depend on the mileage travelled and the type of vehicle used. There are different rates for bicycles than for cars or vans, for instance.

Employee travel claimsWhy am I being asked questions about my employee's travel?

Making a full and accurate tax rebate claim means gathering some information from employees and employers. In addition, HMRC makes a certain number of random checks into tax returns and refund claims, just to make sure they are correct. If HMRC is checking up on one of your employees' expenses claims, they might get in touch (or ask RIFT to contact you) to verify some details with you. For example, they might ask you about things like:

The sites an employee attended, along with the dates.
Whether the employee used their own vehicle.
Whether you gave them any untaxed travel expenses.

There's nothing usual or worrying about these questions. It's just the normal process for verifying claims. You and your business aren't under investigation, and it's entirely up to you whether you give your employees reasonable expenses or company vehicles. All HMRC is doing is checking with you that the details they've been given are correct.

Keeping recordsWhat if I don't have access to the information I'm being asked for?

If RIFT asks you for information you don't have, it's generally not a problem. However, whatever details you can tell us will help to make sure the claim made is accurate and fair.

HMRC will also ask for a copy of your employee's contract of employment. They need this to check things like:

Whether they're permanently employed.
What kind of work they're contracted to do.
Whether the workplaces being claimed for are permanent or temporary.

Your employee, of course, may already have been able to give a copy of their contract to HMRC. If not, though, it's helpful if you can provide a copy either to your employee, RIFT or HMRC.

Information requiredI'm not sure about some of the information I've been asked for.

RIFT is always happy to help. If you're not sure about something, please give us a call or email so we can clarify it for you. Also, feel free to get in touch with any questions you have about tax refunds and the kinds of expenses we claim. You can reach our Compliance team at compliance@riftgroup.com or by phoning the office on 01233 628648.

Additional SupportUseful links

ITEPA 2003, Section 339(5) & (6) – Temporary workplace ruling

https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim32080

Approved Mileage Allowance Payment (AMAP) Rates

https://www.gov.uk/government/publications/rates-and-allowances-travel-mileage-and-fuel-allowances/travel-mileage-and-fuel-rates-and-allowances

Employees using own vehicle to travel when company transport available

https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim31340

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