When it comes to claiming business-related costs, understanding which travel expenses HMRC allows can save you time, stress, and money. In this guide, we break down what counts, what doesn’t, and how to handle claims correctly.
Understanding Travel Expenses
Travel expenses HMRC recognises include the actual costs of travel, subsistence expenditure, and other associated costs incurred during a business journey.
The cost of business travel includes:
- Any necessary subsistence costs paid during the journey
- Meals purchased while an employee is at a temporary workplace
If an overnight stay is needed, the cost of accommodation and meals forms part of the business travel expense. Even if an employee stays away for several days, and the travel expenses HMRC permits are deductible, the total cost (including meals and lodging) is considered part of the overall business travel claim.
Which Subsistence Costs Can You Claim for Business Travel?
To qualify for a deduction, subsistence costs must relate directly to the business journey. Specifically, they should be additional expenses the employee wouldn’t incur if not travelling for work.
Once you confirm that an employee has incurred allowable subsistence costs, there’s no need to subtract any home-based savings. For example, if an employee eats at a restaurant while on a work trip, they can claim the full cost of that meal without adjustments for money saved by not eating at home.
Furthermore, travel expenses HMRC permits should not be unduly lavish. There is official guidance on how to handle claims that seem excessive, especially for accommodation or meal costs linked to business travel.
Can You Claim Travel Expenses with Mileage Relief?
Yes. If you’re claiming statutory mileage allowance relief instead of actual travel costs, you can still claim for subsistence and accommodation. That’s because mileage allowance only covers the cost of using the employee’s own vehicle. It doesn’t restrict relief for other eligible travel expenses HMRC recognises, such as meals or hotel stays required by the trip.
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