Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Employment Income Manual

HM Revenue & Customs
, see all updates

Travel expenses: travel for necessary attendance: fixed term appointments and agency workers: fixed term appointments: example

These two examples illustrate the application of the rule on fixed term appointments to employees on secondment and deal with the evidence needed to determine whether the secondment is a separate employment, see EIM32125.

Example 1

An accountant is employed by a French bank. To further his career he obtains a post as human resources manager for a fixed contract of 18 months with the UK subsidiary of the bank. His contract with the French parent is terminated and he is given a contract with the UK subsidiary at rates of pay and allowances determined by that company. He hopes to be re-employed by the French parent at the end of his period in the UK but he has no continuing contractual rights.

On these facts the accountant has a new employment with a UK employer for a fixed term of 18 months. The French employment has terminated and he has taken up new employment in the UK. He retains merely a hope that his former French employer may re-employ him when his employment in the UK ends.

If he works at any workplace for a period of continuous work (see EIM32080) lasting all or almost all of the period for which he will hold the UK employment, that workplace will be a permanent workplace (see EIM32065) and no deduction can be permitted under Section 338 ITEPA 2003 for the cost of travel to and from that workplace. Section 373 ITEPA 2003 provides for relief for any payments made or reimbursed by the employer for certain travel between France and the UK, see EIM35010.

Example 2

An employee of a Swedish company is seconded for 14 months to work at a UK subsidiary. She is paid by the UK subsidiary for the duration of her secondment at the same rate as she was paid in Sweden and retains some rights with the employer in Sweden. She retains membership of the Swedish pension scheme and her time in the UK counts for her pension entitlement and for seniority purposes.

On these facts the employee has only one employment and the UK secondment is at a temporary workplace in the course of a continuing employment. There is still one contract of employment even though the obligations that an employer would be expected to meet are partly being met by a different company.

As the workplace is a temporary workplace the employee is entitled to a deduction under Section 338 ITEPA 2003 for her travel costs, including costs of accommodation and subsistence for the duration of the secondment, see EIM31815.