Can I Deduct Travel from Home to the Construction Site? HMRC’s 24-Month Rule Explained Simply!
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Practical guide for CIS subcontractors, self-employed workers, LTD directors, PAYE employees and construction businesses in the UK
One of the most common questions for construction workers, CIS subcontractors, sole traders, Limited Company directors and employees who travel to construction sites is this:
“Can I deduct the travel from home to the construction site?”
The correct answer is not simply “yes” or “no”.
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Quick Answer
You can only deduct travel from home to the construction site if the journey is eligible business travel.
For employees and directors, the key question is whether the site is a temporary workplace or a permanent workplace.
For self-employed workers and CIS subcontractors, the key question is whether the journey is genuinely for business and whether you work across several sites or, in reality, mainly at one regular work base.
There is no simple rule that says “the first 24 months are automatically deductible”.
It depends on several factors:
your status: employee, director, self-employed, CIS subcontractor or working through a Limited Company;
whether the construction site is a temporary workplace or a permanent workplace;
how long you will work there;
whether you expect to be there for more than 24 months;
whether you spend more than 40% of your working time there;
whether you work on one site or multiple sites;
whether you have a separate business base;
whether you work through an umbrella company, agency or another employment intermediary;
what documents you have to support the claim.
The most important rule is this:
Normal travel from home to your usual place of work is not deductible. Travel to a temporary workplace may be deductible if HMRC rules are met.
HMRC confirms that you cannot claim tax relief for travel to and from work, except where you are travelling to a temporary place of work.
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Executive Summary
For employees and directors, the main rule is as follows:
If you travel from home to a permanent workplace, that journey is ordinary commuting and is not deductible.
If you travel to a temporary workplace, the cost of the journey may be deductible.
However, a workplace does not remain temporary if you attend it during a period of continuous work that lasts, or is likely to last, more than 24 months. In that situation, the workplace becomes a permanent workplace, and the journey from home to that location becomes ordinary commuting.
For the 24-month rule, HMRC looks at two important tests:
the person spends, or is likely to spend, more than 40% of their working time at that workplace;
and the period of attendance lasts, or is likely to last, more than 24 months.
For self-employed workers and CIS subcontractors, the position is different. The 24-month rule is mainly an employment tax rule for employees. For the self-employed, the “wholly and exclusively” principle applies, and the question is whether the journey is business travel or home-to-work travel.
HMRC says that travel from home to the place of work is generally not deductible, but in the case of subcontractors who work at two or more different sites during the year, travel costs between home and those sites should normally be allowed.
For 2026/27, HMRC has updated the approved mileage rates. For cars and vans, the rate is 55p per mile for the first 10,000 business miles in the tax year and 25p per mile after 10,000 miles. For motorcycles, the rate remains 24p per mile, and for bicycles, 20p per mile.
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1. Why Does This Question Create So Much Confusion?
In construction, people often work on different sites. Today you may work on a project in London, two months later on a project in Essex, then on another site in Hertfordshire, or on a large site that lasts one year or more.
This creates the question:
If the site changes, does that automatically mean the travel is deductible?
Not always.
HMRC does not only look at the fact that the work is carried out on a construction site. HMRC looks at the nature of the workplace, the duration of attendance, regularity, the person’s status and the real reason for the journey.
For employees and directors, the main difference is between:
permanent workplace — the normal or permanent place of work;
and
temporary workplace — a place where you go for a task of limited duration or for a temporary purpose.
A workplace where an employee regularly attends to perform their duties is usually a permanent workplace. A temporary workplace is a place where an employee attends only for a task of limited duration or for a temporary purpose, and travel to a temporary workplace may be deductible.
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2. What Is Ordinary Commuting?
Ordinary commuting generally means travel between home and a permanent workplace.
For employees, HMRC clearly states that travel between home and a permanent workplace is ordinary commuting and the costs are not deductible. This rule also applies where the employee does part of their work from home.
Simple examples:
You travel daily from home to the employer’s permanent office — not deductible.
You travel daily from home to the same depot or yard where you start work — usually not deductible.
You travel to the same construction site for a long period, known from the beginning to be more than 24 months — usually not deductible.
You travel temporarily to a site for a 6-month project — may be deductible.
This is the foundation of the whole discussion.
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3. What Is a Temporary Workplace?
A temporary workplace is a place where an employee goes for a task of limited duration or for a temporary purpose.
In construction, a site may be a temporary workplace if the project is limited in duration and the person is not expected to work there beyond HMRC’s 24-month limit.
Examples:
An employed electrician is sent to a construction site for 4 months.
An employed site manager is sent to a project for 12 months.
A director of their own LTD company travels to several client sites for different jobs, with each project being limited in duration.
In these cases, mileage or travel costs may be deductible if the other conditions are met.
But temporary workplace does not automatically mean “any construction site”.
If the site becomes the main place where you regularly attend and it is known that you will work there for more than 24 months, HMRC may treat that site as a permanent workplace.
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4. The 24-Month Rule Explained Simply
The 24-month rule does not mean that you can automatically deduct every journey during the first two years.
This is a very common mistake.
The correct rule is:
A workplace is not temporary if the employee attends it during a period of continuous work that lasts, or is likely to last, more than 24 months. If this rule applies, the workplace is treated as permanent.
For the rule to turn a workplace into a permanent workplace, two elements must be considered:
the person spends, or is likely to spend, more than 40% of their working time at that workplace;
and the period of attendance lasts, or is likely to last, more than 24 months.
This means it is not only about how many months have already passed. It also matters what was known or expected at the time.
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5. The Big Mistake: “The First 24 Months Are Always Deductible”
Many people believe that if they work on the same site for 23 months, they can automatically deduct all travel.
That is not always correct.
If it is known from the beginning that the project will last 30 months and you will work there full-time, HMRC may treat the workplace as permanent from the start. In this case, there is no “free” 24-month period.
HMRC gives clear examples: if an employee is sent to a workplace for 28 months and it is known from the beginning that they will spend more than 40% of their working time there, there is no tax relief for travel because the workplace is permanent.
The correct rule is about expectation, not only the time actually passed.
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6. What Happens If the Project Was Initially Under 24 Months but Is Later Extended?
This is a very common situation in construction.
Example:
An employee is sent to a construction site for 18 months. After 10 months, the project is extended and it becomes clear that it will last 28 months in total.
In this situation, travel may be deductible for the period during which the realistic expectation was that the project would last under 24 months. From the moment the expectation changes and it becomes clear that the period will exceed 24 months, the workplace may become permanent and the travel relief may stop.
The practical message:
It is not only the date you started that matters. It also matters when the expectation about the project duration changed.
This is why it is important to keep documents: contracts, emails, project extension letters, site instructions or any other evidence showing the estimated duration of the work.
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7. What Does the 40% Rule Mean?
The 40% rule is very important.
For a workplace to be treated as permanent under the 24-month rule, the employee must spend, or be likely to spend, more than 40% of their working time at that workplace during a period that lasts, or is likely to last, more than 24 months.
Example:
You work 5 days per week. You go to the same construction site 4 days per week. That is 80% of your working time. If you are expected to do this for more than 24 months, the site may become a permanent workplace.
Another example:
You work 5 days per week. You go to the same site 1.5 days per week. That is below 40%. Even if the period is longer than 24 months, the 24-month rule may not automatically turn that site into a permanent workplace because the “more than 40%” test is not met.
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8. Employees and Directors: When Can Travel to Site Be Deductible?
For an employee or director of a Limited Company, travel from home to a construction site may be deductible if the site is a temporary workplace.
This may include:
mileage with your personal car;
train, bus or public transport;
parking;
tolls;
congestion charge;
hotel accommodation, where overnight accommodation is required;
food and drink, in certain situations linked to travel to a temporary workplace.
HMRC confirms that, for travel and overnight expenses, eligible costs may include public transport, hotel accommodation, food and drink, congestion charges, tolls and parking fees, but not ordinary commuting.
For cars and vans personally used for business mileage, the HMRC rate for 2026/27 is 55p per mile for the first 10,000 business miles and 25p per mile after that.
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9. Example: LTD Director Travelling to a Temporary Construction Site
Let’s say you have a Limited Company and you are the director.
Your company has an 8-month contract for work on a construction site in Cambridge. You drive from home to the site using your personal car.
If the site is a temporary workplace, the company may, in principle, reimburse your mileage for business travel using the HMRC rate.
For 2026/27:
first 10,000 business miles: 55p per mile;
after 10,000 business miles: 25p per mile.
If you travel 100 miles return for one working day, at 55p per mile, the mileage claim would be:
100 miles × £0.55 = £55
This must be supported by a mileage log, contract, site details, work dates and evidence that the site is a temporary workplace.
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10. Example: LTD Director on the Same Site for 30 Months
Now let’s take another example.
You have a Limited Company and you sign a contract where you know from the start that you will work full-time on the same site for 30 months.
Even though technically the site is a “client site”, for travel expenses purposes it may become a permanent workplace from the beginning, because it is known that you will work there for more than 24 months and spend more than 40% of your time there.
In this situation, the journey from home to that site risks being treated as ordinary commuting, not business travel.
This means the mileage claim may be refused or treated as a taxable benefit if paid incorrectly.
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11. What If I Go First to a Yard, Depot or Office?
This is a very common situation in construction.
Example:
In the morning, you travel from home to the yard. From there, you collect the van, materials, tools or receive instructions. Then you travel to the construction site.
In many cases, the journey from home to the yard/depot may be ordinary commuting if the yard is a permanent workplace or business base.
The journey from the yard/depot to the site may be business travel if the site is a temporary workplace.
It is not enough to say “I carried my tools” or “I passed by the yard”. The real role of the yard must be analysed. If the yard is the place where you regularly attend for work, HMRC may see it as a permanent workplace.
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12. If I Work from Home, Can I Deduct Travel to the Site?
Not automatically. This is another common misunderstanding.
For employees, HMRC says that travel between home and a permanent workplace remains ordinary commuting even if the employee does some work from home.
In other words, sending emails from home, keeping documents at home or doing admin from home does not automatically turn all journeys into business travel.
For the self-employed, HMRC also says that simply keeping records, materials or tools at home does not automatically mean that travel from home to the place of work is deductible.
However, if home is genuinely the business base and you travel to many clients or many different sites to provide services, the position may be different. The facts need to be analysed.
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13. Self-Employed and CIS Subcontractors: Does the 24-Month Rule Apply?
For self-employed workers and CIS subcontractors, an important distinction must be made.
The 24-month rule is mainly a rule from the Employment Income Manual for employees.
If you are a sole trader or self-employed CIS subcontractor, you do not apply the same rule mechanically as an employee. For you, the business expense principles apply: the expense must be incurred wholly and exclusively for business purposes.
HMRC says that travel from home to the place of work is generally not deductible because it also has a private element: the choice of where you live.
However, HMRC also says that, for subcontractors, if you work at two or more different sites during the year, travel expenses between home and those sites should normally be allowed.
In contrast, if you work at one or very few sites, that site may be treated as a business base, and travel from home to that site may be refused.
This is the key difference for CIS subcontractors.
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14. Example: CIS Subcontractor with Multiple Sites
Ion is a self-employed CIS subcontractor.
During the tax year, he works as follows:
3 months on a site in Barnet;
2 months on a site in Enfield;
4 months on a project in Watford;
1 month on small jobs for several clients.
He does not have a separate depot. Admin, invoices, tool planning and documents are handled from home.
In this type of situation, if Ion is genuinely self-employed and works across multiple sites, the mileage from home to those sites may, in many cases, be claimed as business travel.
However, Ion must keep clear records:
date of each journey;
site address;
client;
purpose of the work;
number of miles;
related contract or invoice;
CIS statements;
evidence that this is not simply a normal journey to the same permanent place.
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15. Example: CIS Subcontractor on One Large Site
Now let’s take another example.
Mihai is a CIS subcontractor and works almost all year on the same site. He goes there Monday to Friday, to the same address, for the same contractor.
In this situation, HMRC may consider that the site is, in reality, a business base or the main place where he carries out his activity. If that is the case, travel from home to the site may be refused.
It is not enough to say “I am CIS, so I can deduct the travel”.
CIS is a tax deduction system for the construction industry. It does not automatically mean that all travel is deductible.
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16. PAYE Employee in Construction: Can I Deduct Travel to Site?
If you are a PAYE employee, you need to look at the workplace.
If the site is a permanent workplace, you cannot deduct the journey from home to that location.
If the site is a temporary workplace, you may be entitled to tax relief for travel costs.
Deductible example:
You are employed by a construction company with a permanent office in London. You are temporarily sent for 6 months to a project in Birmingham. Travel to Birmingham may be business travel if the conditions are met.
Non-deductible example:
You are employed to work directly on a specific site for 30 months. The site is known as your main place of work. Travel from home to that site will most likely be ordinary commuting.
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17. Workers Through Umbrella Companies, Agencies or Employment Intermediaries
For workers through an umbrella company, agency or another employment intermediary, the rules may be more restrictive.
From 6 April 2016, rules were introduced for workers who provide personal services through employment intermediaries. Where these rules apply, each engagement may be treated as a separate employment for travel and subsistence purposes, and in many cases relief is not available for home-to-work travel and associated subsistence.
This area is important for construction workers, agency workers and umbrella workers.
If you work through an umbrella company or agency, do not automatically assume that you can claim mileage to the site. The contract, status, whether you are under supervision, direction or control, and how the employment intermediary rules apply must all be checked.
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18. What Costs Can Be Deductible If the Journey Is Business Travel?
If the journey is allowable business travel, costs may include, depending on the situation:
mileage using your personal car;
train;
bus;
taxi, if justified;
parking;
tolls;
congestion charge;
ULEZ, if relevant and linked to business travel;
hotel, if you need to stay overnight for the work;
meals/subsistence, if linked to business travel and not just normal everyday meals;
other necessary travel costs.
For employees, HMRC includes public transport, hotel accommodation, food and drink, congestion charges, tolls and parking fees in the travel and overnight expenses category where the journey is eligible.
Important:
If the travel is not deductible, the associated costs, such as parking or lunch on the route, will usually not be deductible either.
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19. Mileage Rates 2026/27: How Much Can You Claim?
For 2026/27, HMRC Approved Mileage Rates are:
Cars and vans
55p per mile for the first 10,000 business miles in the tax year;
25p per mile for business miles above 10,000.
Motorcycles
24p per mile.
Bicycles
20p per mile.
Passenger payment for cars and vans
5p per passenger per business mile for fellow employees carried on a journey that is also a work journey for them.
These rates are important for employees and directors who use their personal vehicle for business journeys.
For self-employed individuals using simplified mileage, the new 2026/27 rates should also be checked and applied correctly depending on the method used.
20. Can I Claim Fuel Receipts Instead of Mileage?
It depends on the situation.
If you use your personal car, the simplest method is usually mileage allowance. The HMRC mileage rate is designed to cover more than just fuel: it includes wear and tear, servicing, insurance and running costs.
If you are self-employed, you can use either simplified mileage or the actual costs method, but you must be consistent and follow the rules.
If the vehicle belongs to the company, the rules are different. For company cars or company vans, you do not simply apply 55p per mile as if it were your personal car. Fuel rules, advisory fuel rates, private use, benefit in kind and separate records may apply.
For a general blog, the practical rule is:
Personal car used for eligible business travel: mileage claim. Company vehicle: separate analysis.
21. Can I Deduct Food If I Work on Site?
Not automatically.
Many subcontractors and employees believe that if they work on site, they can deduct daily lunch. The rule is more sensitive.
If you travel to a permanent workplace or to your normal place of work, ordinary lunch does not become deductible just because you are at work.
If you are on a business journey to a temporary workplace, subsistence may be deductible in certain conditions.
For employees, HMRC mentions food and drink as a possible eligible cost in the context of travel and overnight expenses, but the basic rule remains that ordinary commuting cannot be claimed.
For the self-employed, it must be analysed whether the meal cost is a real part of business travel or just a normal everyday meal.
22. Can I Deduct the Hotel If the Site Is Far Away?
If you need to stay overnight because you are temporarily working far from home, the hotel may be deductible if the travel is eligible business travel.
Example:
Your company has a temporary 2-week project in Manchester. You live in London. Daily commuting would not be reasonable.
The hotel and certain subsistence costs may be deductible if they are wholly, exclusively and necessarily/business-related and supported by receipts.
However, if you temporarily move to an area for a long project that becomes a permanent workplace, the position may change.
23. What Documents Should Be Kept?
To support a travel claim, keep:
mileage log;
date of each journey;
departure address;
construction site address;
postcode;
client or contractor name;
purpose of the journey;
number of miles;
evidence that the site is a temporary workplace;
contracts;
emails regarding project duration;
site instructions;
timesheets;
invoices;
CIS statements;
receipts for parking, tolls, hotel, train, bus;
proof of payment;
notes about project changes or contract extensions.
For the 24-month rule, documents about the estimated duration are very important.
If HMRC asks why you claimed mileage for 14 months to the same construction site, you need to be able to show that, at the time, the project was estimated to be under 24 months and the site was temporary.
24. Quick Checklist: Can I Deduct Travel to Site?
Ask yourself:
Am I an employee, director, self-employed, CIS or umbrella worker?
Is the construction site a temporary workplace or permanent workplace?
Do I work there regularly?
How long am I expected to work there?
Is it likely to exceed 24 months?
Do I spend more than 40% of my working time there?
Do I have a separate permanent workplace?
Do I regularly go to a yard, depot or office?
Do I work on multiple sites or only one?
If I am self-employed, what is my real business base?
If I am a CIS subcontractor, do I have evidence that I work across multiple sites?
If I work through an umbrella company or agency, do the employment intermediary rules apply?
Do I have a mileage log and clear documents?
If you cannot answer these questions clearly, the claim should be reviewed before it is included in a Tax Return or company accounts.
25. Most Common Mistakes
Mistake 1: “I am CIS, so I can automatically deduct travel”
False. CIS is a tax deduction system, not automatic approval for travel expenses.
Mistake 2: “The first 24 months are always deductible”
False. If it is known from the start that you will work more than 24 months at the same workplace and more than 40% of your time will be spent there, the place may be permanent from day one.
Mistake 3: “I work from home, so every journey is business travel”
False. HMRC says that homeworking does not automatically turn travel to a permanent workplace into a deductible cost.
Mistake 4: “I have tools in the car, so the journey is business”
Not necessarily. Carrying tools may help in some situations, but it does not automatically change the nature of the journey.
Mistake 5: “If I have a fuel receipt, I can claim everything”
No. You must prove that the miles were business miles and that the journey was eligible.
Mistake 6: “If the contractor sent me there, it is definitely temporary”
Not always. Duration, expectation, regularity and percentage of time worked there must be analysed.
Mistake 7: “I can deduct daily lunch on site”
Not automatically. Subsistence usually follows the nature of the travel. If the travel is ordinary commuting, ordinary lunch may also be refused.
Mistake 8: “I changed the contract, so the rule resets”
Not necessarily. HMRC looks at the reality of the facts, not just the documents. If you work in the same place, for the same project or the same area, a formal contract change may not be enough.
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26. Practical Examples
Example 1: PAYE electrician sent to a site for 6 months
Andrei is a PAYE employee at an electrical installation company. His permanent workplace is the company office, but he is sent to a site for 6 months.
If the site is a temporary workplace, travel from home to the site may be deductible or reimbursed tax-free by the employer, within the rules.
Example 2: Site manager sent to a 30-month project
Maria is an employee and is sent full-time to a site for 30 months.
Because it is known from the beginning that she will be there for more than 24 months and spend more than 40% of her working time there, the site may be a permanent workplace. Travel from home to the site is not deductible.
Example 3: Project initially 18 months, extended to 28 months
George is sent to a workplace for 18 months. After 10 months, the project is extended to 28 months.
Travel relief may be available for the first 10 months, while the expectation was under 24 months. From the moment the expectation changes and the period exceeds 24 months, the relief may stop.
Example 4: CIS subcontractor on three different sites
Ion is self-employed CIS and works on three different sites in the same tax year.
If he does not have a separate business base and his activity involves travelling to several sites, travel from home to those sites may normally be deductible, if supported by documents.
Example 5: CIS subcontractor on the same site all year
Vasile is self-employed CIS and works on the same site almost all year, 5 days per week.
There is a risk that the site may be considered his business base. If so, travel from home to that site may be refused.
Example 6: LTD director travelling to several clients
Daniel has a Limited Company and travels to several clients and sites during the year. He does not have a permanent workplace at the client’s premises. Each project is limited.
In this case, mileage to client sites may be deductible if each journey is business travel and the documents are clear.
Example 7: Umbrella worker on the same site
A worker works through an umbrella company on a client site. In many situations, employment intermediary rules may restrict tax relief for travel and subsistence from home to the site.
The position must be checked based on the contract, status and supervision, direction or control.
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27. How Should LTD Companies Manage Travel Claims?
For a Limited Company, it is important to have a simple and clear policy.
Each claim should include:
the person’s name;
date of travel;
reason for the journey;
departure and destination;
postcode;
number of miles;
vehicle used;
client/project;
whether the site is a temporary workplace;
mileage rate used;
director approval or signature;
supporting documents.
For directors, it is recommended that mileage claims are prepared regularly, not reconstructed approximately at the end of the year.
A proper monthly mileage log is much better than an estimate made after 12 months. Approval and digital storage of the mileage log, through dedicated apps, can make this process much easier.
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28. How Can an Accountant Help?
An accountant can help with:
checking the status: employee, director, CIS, self-employed;
analysing temporary workplace vs permanent workplace;
applying the 24-month rule;
checking the 40% threshold;
calculating the mileage claim;
preparing a mileage log template;
separating deductible travel from ordinary commuting;
checking the treatment for LTD companies;
recording the claim correctly in bookkeeping;
Self Assessment for CIS subcontractors;
accounts and CT600 for Limited Companies;
avoiding risky claims.
An accountant cannot turn a personal expense into a deductible expense, but they can help identify what is correct, what is risky and what documents should be kept.
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29. Conclusion
The question “Can I deduct travel from home to the construction site?” sounds simple, but the answer depends on the facts.
For employees and directors, the key is the difference between a permanent workplace and a temporary workplace.
For self-employed workers and CIS subcontractors, the key is whether the journey is business travel or home-to-work travel, and whether the person works across multiple sites or, in reality, mainly at one business base.
The 24-month rule is not automatic approval for the first 24 months. If it is known from the beginning that you will work for more than 24 months at the same place and more than 40% of your working time will be there, that place may be a permanent workplace from day one.
However, if you travel temporarily to a site for a limited period and the documents support this, the travel may be deductible.
The golden rule is:
Do not claim automatically. Check your status, project duration, percentage of time, nature of the workplace and keep clear documents.
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Do You Need Help with Travel Expenses, CIS or Limited Company Accounts?
At DCTaxAgent Ltd, we support self-employed individuals, CIS subcontractors, LTD directors and small businesses in the UK.
We can help with:
Self Assessment Tax Returns;
CIS Tax Returns;
CIS refund claims;
Limited Company Accounts;
Corporation Tax — CT600;
bookkeeping;
payroll;
VAT Returns;
travel expenses review;
mileage claims;
Director’s Loan Account;
salary and dividend planning;
organising documents for HMRC.
If you are not sure whether you can deduct travel from home to the construction site, it is better to check before including the expense in your Tax Return or company accounts.
Phone / WhatsApp: 07587 532646
Email: contact@dctaxagent.co.uk
Website: www.dctaxagent.co.uk
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Disclaimer
This article is for general information and educational purposes only and does not represent personalised tax advice, legal advice or employment status advice.
The rules on travel expenses, mileage, CIS, Self Assessment, Limited Companies, employees, directors, temporary workplace, permanent workplace, employment intermediaries and the 24-month rule can vary depending on the exact circumstances.
DCTaxAgent accepts no responsibility for decisions made solely based on this article without personalised advice.
For an accurate review, speak to an accountant or tax adviser.