Why Children’s Activity Providers Cannot Claim Mileage to Regularly Taught Classes
When it comes to claiming travel expenses for tax purposes, the rules around what qualifies as deductible mileage can be complex. One key factor is whether the location you travel to is considered a "temporary workplace" or a "permanent workplace" under tax legislation. For children’s activity providers who teach regular classes at the same locations each week, these locations are typically classified as permanent workplaces. Here’s why:
Understanding Temporary vs. Permanent Workplaces
The legislation (ITEPA 2003, Section 339) states that a workplace is temporary only if:
The employee attends it to perform a task of limited duration or for a temporary purpose (EIM32075).
The employee does not spend 40% or more of their working time there over a period exceeding 24 months (EIM32080).
If a workplace does not meet these criteria, it is considered a permanent workplace, meaning that travel to and from that location is classified as ordinary commuting, which is not deductible for tax purposes.
Why Teaching Regular Classes Does Not Qualify as a Temporary Workplace
For children’s activity providers who travel to the same venues each week to teach classes:
The purpose of the visits is not temporary. Teaching a recurring class is an ongoing duty, not a short-term or one-off task (EIM32150).
If the provider spends 40% or more of their working time at a particular location and this arrangement lasts, or is expected to last, more than 24 months, then that location is a permanent workplace under the 24-month rule (EIM32080).
Even if the provider works at multiple locations, if the change in venues does not substantially alter their travel pattern, HMRC treats all those locations as one single workplace (EIM32280).
It is possible to have more than one permanent workplace. If a provider regularly works at different locations and meets the criteria for a permanent workplace at each, they will be considered to have multiple permanent workplaces, meaning travel between home and any of these locations is not deductible.
What Mileage Can Be Claimed?
While travel between home and a permanent workplace, is not deductible, there are situations where mileage can still be claimed:
Journeys to a temporary workplace (e.g., covering for another instructor at a different venue for a short period).
Journeys between two workplaces (e.g., if a provider teaches at multiple venues in a day, travel between one permanent workplace and another may be deductible, provided neither is considered their home base).
Journeys for business-related tasks (e.g., attending a conference or training event).
Conclusion
For most children’s activity providers who teach at the same locations each week, those venues are considered permanent workplaces. As a result, travel from home to those locations is not deductible under HMRC’s travel expense rules. Additionally, a provider may have multiple permanent workplaces if they regularly work at different locations. Understanding these distinctions helps ensure compliance with tax regulations and avoids incorrect mileage claims.
Need Help Navigating Business Expenses?
Understanding tax rules can be tricky, but you don’t have to figure it out alone! If you want clarity on what expenses you can and can’t claim, get in touch. At Pink Lily Accounting Solutions, we help children’s activity providers stay compliant and maximise their financial efficiency.
Contact us today to ensure your bookkeeping and tax claims are on the right track!
E-mail us now on karen@pinklilyaccounting.co.uk to see how you can work with us.
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