Permanent and temporary workplace for the computer consultant

4.1 Tax Questions
B What is the significance of the workplace being permanent or temporary? "I told the Inland Revenue I didn't owe them a penny because I lived near the seaside." Ken Dodd The location of your workplace can affect your take-home pay. For a computer consultant contractor £100 claimed as tax deductible expenses saves a higher rate tax payer £47.70. Allowable business journeys and expenses attract tax relief so that they are not taxed. Where tax relief is not available, any amounts paid by the computer consultant contractor are subject to tax. The National Insurance treatment broadly follows the tax treatment. Let us examine travel. In this case tax-free reimbursement is available for a business journey; if it is one for which there is a “genuine business reason or purpose”. They include journeys you have to make in the performance of your duties to and from places you have to attend in the performance of your duties provided the journey is not "ordinary commuting" i.e. the journey between your home and a permanent workplace. Where an employee has a series of temporary workplaces (and no permanent workplace which would be the case with a site based employee) tax relief will be available for all journeys undertaken if attendance at the temporary workplace is in the performance of their duties. If you need advice about the nature of your workplace contact us and we will help you with this free of charge.