🚗💼 Travel for work? You could claim more than you think!
Whether you’re visiting clients, working at a temporary site, or clocking up mileage in your own car — HMRC’s rules on travel and subsistence might let you claim back:
✅ Travel to temporary workplaces
✅ Mileage (45p per mile up to 10,000 miles)
✅ Meals, drinks, and overnight stays
✅ £5–£10/day for incidental overnight expenses
✅ Tax-free reimbursements from employers
❌ No relief for your morning commute
❌ No claims for dog-sitters or the Netflix bill
______________________________________
Claiming Travel and Subsistence – What You Can (and Can’t) Deduct
When business takes you away from your usual workplace, the cost of travel, meals, or even a hotel stay can quickly add up. The good news? HMRC has clear rules on what you can claim as travel and subsistence expenses – potentially saving you or your business hundreds each year.
Here’s what you need to know.
🚉 What Qualifies as Business Travel?
To claim relief or reimburse tax-free, your journey must be for business purposes — not your regular commute.
You can claim for:
- Travel to temporary workplaces (usually under 24 months)
- Journeys between multiple permanent workplaces in the same employment
- Travel between linked employers, such as within a group company
Expenses must be “wholly and exclusively” for work, so weekend breaks or popping by a friend’s house on the way don’t count.
🏢 Temporary vs Permanent Workplace
The 24-month rule is key.
- Temporary workplace: You’re expected to work there for less than 24 months and it’s not your main place of employment. Think covering maternity leave at another office.
- Permanent workplace: You go there regularly over a long period. Even if it’s far away, it’s still commuting.
Example:
Ella normally works in Birmingham but is sent to Manchester for 6 months. That’s temporary – her travel and hotel costs are deductible.
But Joseph accepts a 6-month job based solely in Manchester – that’s his only workplace during that job, so it’s permanent, and his travel costs aren’t deductible.
🍽️ What About Subsistence?
If your work trip includes meals or overnight stays, HMRC allows for:
- Actual costs (with receipts), or
- Benchmark rates (no receipts needed if a checking process is in place)
These rates vary by circumstance — special rules exist for lorry drivers and overseas travel.
There’s also an incidental overnight expense allowance:
- £5 per night in the UK
- £10 abroad
⚠️ But beware: if this is exceeded (even by £1), the whole amount becomes taxable!
🚗 Mileage
Use your own car for work trips? Claim mileage at:
- 45p per mile for the first 10,000 miles
- 25p per mile thereafter
- Add 5p per mile for each business passenger carried
If your employer reimburses you less than this, you can claim the difference. If they pay more, the excess is taxable.
❌ What You Can’t Claim
No relief is available for:
- Ordinary commuting (home to permanent workplace)
- Private expenses like childcare, pet care, or entertainment
- Journeys caught under IR35/off-payroll working rules
Final Thoughts
Navigating HMRC’s rules on travel and subsistence can be a minefield – but done right, you could reduce your tax bill or ensure your team is properly reimbursed without unnecessary NICs.
Got questions? We can help you determine what’s allowable and make sure you’re claiming everything you’re entitled to.
Written by Graham Wesson
Director – GMS Business Accountants
Specialist in SME tax and business advisory
