Claiming Travel Expenses

Claiming travel expenses accurately can reduce your tax liability, but HMRC imposes strict rules on qualifying costs. This guide explains everything you need to know to ensure compliance and maximize savings.

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How Business Travel is Defined for Tax Purposes

HMRC defines business travel as journeys made 'wholly and exclusively' for business purposes. This means the trip must be directly related to your work duties, not personal activities.

For example, travel to a temporary workplace or client site qualifies, but your regular commute from home to your permanent office does not. Accurate definitions are key to avoiding errors in your claims.

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What Travel Expenses You Can Legitimately Claim

HMRC allows various travel-related costs when incurred for business. Here’s a detailed list of what you can claim to reduce your tax bill:

Business mileage at 45p per mile for the first 10,000 miles, then 25p per mile thereafter using your own vehicle
Public transport fares including trains, buses, and coaches for business journeys
Taxi or ride-share expenses when public transport is impractical or unavailable
Parking fees at business destinations, but not parking fines or penalties
Congestion charges, tolls, and ferry costs incurred on business trips
Hotel accommodation for overnight stays necessary for business purposes
Reasonable meal costs during business travel, but not regular daily lunches
Air fares and associated baggage fees for business flights
Local transport like tube or tram fares in cities visited for business
Car hire costs when a vehicle is needed at the destination for business activities

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Avoiding Common Pitfalls in Travel Expense Claims

A frequent error is claiming for ordinary commuting, which HMRC explicitly excludes. Another mistake is double-dipping by claiming both mileage and actual vehicle costs for the same journey—you must choose one method.

Maintain detailed logs with dates, purposes, and distances to support your claims. For complex situations, such as multiple workplaces or overseas travel, seeking professional advice from accountants like DG Accountancy Ltd can ensure compliance and save you time.

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DG Accountancy Ltd provides fixed monthly accountancy services for small businesses and contractors in Torquay and across the UK. Contact us for reliable support to help your business thrive.