In Hamish Taylor v HMRC [2020] TC07893, a claim for travel and subsistence by a sub-contractor failed on the basis that his home was not his base of operation.

HMRC raised an assessment and a penalty notice on the basis that:

HMRC conceded that had Mr Taylor's base of operations been his home in Scotland, travel to one-off contracts in Swindon would have been treated as allowable.

The FTT found that:


This is a difficult area of legislation to apply and can be subjective. Each set of facts have to be judged on individual merits. This particular case turned on the definition of 'base', which is not always home in the absence of a traditional office.


Wholly & Exclusively
Overview of the rules on what trading expenses are tax-deductible.

Self-Employed Travel Expenses
Guidance on when travel expenditure is deductible.

Self-Employed Subsistence Expenses
Guidance on when subsistence expenditure (food/drink/overnight expenses) is deductible. 

Adviser's Tax Penalty Planner
An essential overview of penalties across the different tax regimes.

Penalties: Errors in Returns & Documents
An in-depth review of the tax-geared penalty system based on disclosure and culpability.

External link

Hamish Taylor v HMRC [2020] TC07893