Q. I wanted to know if I can claim my travel to work as an tax deductible expense. I recently setup a company inorder to work as a contractor to a bank.
A. You are able to claim travelling expenses to the bank provided the bank is a temporary workplace.
A temporary workplace a place which an employee (as a director you are an employee of your company) attends for the purpose of performing a task of limited duration or for some other temporary purpose is a temporary workplace. But there is a special rule which prevents a workplace being a temporary workplace where an employee attends it in the course of a period of continuous work which lasts, or is likely to last, more than 24 months.
If at any point in your contract you become aware that you are going to be working at the bank longer than 24 months you must stop claiming travelling expenses from that point in time.
What if its longer than 24 months, but less than 40% of the time is spent there?