In Victor Michael v HMRC [2026] TC09751, the First Tier Tribunal (FTT) found that a nurse was not entitled to a deduction for travel expenses. While his attendance at Southport Hospital was for less than 24 months, it was his permanent workplace, and as such, his travel was ordinary commuting.
Victor Michael (VM), a registered nurse, claimed a deduction from his earnings in 2021-22 and 2022-23 for expenses, including mileage, food and drink, Laundry, Work shoes/belt, and Professional regulatory fees.
- In 2021-22, VM claimed 227 return journeys of 94 miles to/from Southport Hospital. In 2022-23, 77 such journeys were claimed.
- HMRC issued closure notices removing all the Business travel and other expenses claimed by VM, except for laundry, shoes, and fees paid to the Nursing and Midwifery Council.
- In relation to VM’s travel expenses (mileage, parking and attributable Subsistence):
- HMRC’s stance was that Southport Hospital was VM’s Permanent workplace, meaning that those travel expenses related to an ordinary commute from his home to his workplace.
- VM maintained that Southport Hospital was a Temporary workplace. He argued that Manchester University NHS Foundation Trust employed him and that North Manchester General Hospital was his permanent place of work. Due to the COVID-19 pandemic, he was asked to work at the Southport Hospital for a period of less than 24 months.
- In relation to the other expenses, HMRC argued that VM was under no obligation to incur those particular expenses wholly, exclusively and necessarily in the performance of his employment duties. VM disagreed.
- VM Appealed to the First Tier Tribunal (FTT).
Under s.339(2) ITEPA 2003, a ‘permanent workplace’ is any place an employee regularly attends in the performance of their duties of employment unless it is a temporary workplace.
A ‘temporary workplace’ is defined at s.339(3) as a place attended to perform duties of employment for the purpose of a task of limited duration or for some other temporary purpose.
S.339(5)(a)(i) states that a workplace is not regarded as a temporary workplace if the employee's attendance is, in the course of a period of continuous work at that place, lasting more than 24 months.
The FTT found that:
- VM was an Agency worker for NHS Professionals with respect to the work he undertook at Southport Hospital.
- While it appeared to be the case that VM’s period of work at Southport Hospital was less than 24 months, s.339(5)(a)(ii) provides that a workplace is not temporary if the employee’s attendance comprises, in the course of a period of continuous work at that place, all or almost all of the period for which the employee is likely to hold the employment.
- A period of continuous work at a place is a period over which the duties of the employment are performed to a significant extent.
- The decision in Mainpay Ltd v HMRC [2023] TC08678 concluded that where workers attended workplaces in the course of their assignments via an employment agency, each assignment was a separate employment. The workplace for each assignment was a 'permanent' workplace.
- Southport Hospital was the sole premises attended by VM during the relevant periods of work.
- Such attendance was for all or almost all of the periods of work in question.
- Southport Hospital was therefore the permanent workplace of VM: it was not a temporary workplace.
- The travel and attributable expenses were ordinary commuting expenses and not deductible for tax purposes.
- In respect of the non-travel expenses, the provisions of s.336 ITEPA 2003 were notoriously rigid, narrow and restrictive in their operation.
- Case law did not, in any way, support VM’s claim. The non-travel expenses were not deductible expenses, save for those allowed by HMRC.
The appeal was dismissed.
Useful guides on this topic
Agency workers: Employment intermediaries rules (subscribers)
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Travel (employer's guide)
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