No substantial changes in travel costs

The taxpayer worked for a construction company on various projects at different locations in London. Each one was for a period of less than 24 months. Given that he worked mainly in London because his home was elsewhere he lived in temporary accommodation. The employer reimbursed his travel and subsistence costs after deducting PAYE and National Insurance.

The taxpayer claimed relief under ITEPA 2003 s 338 in his self-assessment tax returns for travel and subsistence on the basis that he had to travel from his permanent home to his temporary accommodation at the beginning and end of each week and to and from his temporary accommodation and each construction site.  

HMRC said there was no substantial effect on the taxpayer’s journey when he transferred to a new site because they were all in Greater London. They should be treated as a single workplace rather than temporary...