Travel and subsistence for haulage operators must distinguish between travelling to work and travelling while performing the work. A driver may spend almost the entire working day moving between customer sites, distribution centres and delivery points while still having a permanent workplace at the depot where the vehicle is collected or daily duties begin.
The distinction determines whether mileage, public transport, meals and overnight subsistence can be reimbursed tax-free or deducted for tax purposes. The fact that a driver works at many destinations does not automatically make the journey from home allowable.
Travel and subsistence for haulage operators based at a depot
Where a driver regularly attends a depot because it is the base from which the employment duties are performed, that depot is normally treated as a permanent workplace.
The HMRC rules for depots and similar bases specifically provide that regular attendance at the place from which an employee works or receives routine task allocations can make that location permanent.
A driver who travels from home to the same depot every morning, collects a lorry and then starts deliveries will therefore ordinarily be commuting between home and a permanent workplace. The journey is not converted into business travel merely because the employee spends only a few minutes at the depot.
Once the driver leaves the depot to perform deliveries, travel between the depot and customers, and between customer locations, is normally travel undertaken in performing the employment duties.
Travel and subsistence for haulage operators using several depots
Multiple depots do not automatically mean that every depot is temporary.
An employee can have more than one permanent workplace at the same time. If a driver regularly works from Coventry on certain days and another established depot on other days as part of an enduring working pattern, both locations can potentially be permanent workplaces.
The detailed temporary workplace rules require consideration of why the employee attends each location. A workplace attended for a genuinely temporary purpose or a task of limited duration can qualify as temporary, but further restrictions such as the 24-month rule must then be considered.
For example, a driver normally based in Coventry who is sent to cover a Rugby depot for three months may have qualifying temporary-workplace travel if the arrangement is genuinely temporary. A permanent contractual change assigning regular duties to Rugby produces a different result.
Itinerant drivers require a different analysis
Some employees have no true permanent base. Their duties inherently involve travelling, and daily assignments may be received at home or electronically without requiring attendance at a depot.
HMRC describes this type of employment as a travelling appointment. A genuinely itinerant employee can potentially be travelling in the performance of their duties from the point they leave home.
The distinction is factual. A driver cannot become itinerant simply because a mobile phone is used to send instructions while they continue to collect the same vehicle from the same depot every day.
Work patterns, vehicle location, task allocation, contractual base and where the employee is treated as starting work should all be reviewed together.
Subsistence follows qualifying business travel
Subsistence relief does not operate independently from the travel rules. Meals and accommodation will normally qualify only where they are attributable to qualifying business travel.
A driver cannot generally claim ordinary lunches eaten while working at a permanent depot merely because the job is in haulage. By contrast, reasonable meal costs incurred while undertaking qualifying travel can form part of the business travel expense.
Overnight subsistence must also be supported by the journey and business requirement. Round-sum allowances should not simply be paid tax-free without considering the statutory exemption, approved scale rates or evidence of qualifying expenditure.
Where the employer reimburses travel and subsistence, the payroll treatment should be supported by mileage logs, depot records, route information and overnight schedules.
Self-employed haulage operators follow different rules
An owner-driver carrying on a genuine trade is not applying the employee temporary-workplace legislation in precisely the same way. Their deduction is considered under the business-expense rules, including whether the journey is wholly and exclusively for the trade.
Employment status should therefore be resolved before copying expense treatment between employed drivers and subcontracted owner-drivers.
Haulage businesses should integrate expense treatment into their payroll and PAYE systems rather than relying on generic driver allowances. Where drivers rotate between depots, work through intermediaries or have unusual travel patterns, specialist tax advice should establish whether each location is permanent, temporary or part of a genuine travelling appointment.
Disclaimer: This article is provided for general guidance only and does not constitute personal tax, legal or financial advice. The correct tax treatment depends on the specific facts, applicable legislation and HMRC practice at the relevant time. You should contact us for advice tailored to your circumstances before taking or refraining from any action.
