As a small business owner, you know that every penny counts. That’s why it’s important to ensure you’re maximising your profits by claiming all eligible allowable expenses - including travel expenses!
Worried about staying HMRC compliant? AXA’s guide breakdown everything you need to know about claiming business travel expenses. Read on as we cover what counts as an allowable travel expense, the different types of travel expenses, and how to make an eligible claim.
What are business travel expenses?
Business travel expenses refer to the costs associated with travelling outside of the office for work-related purposes. As a self-individual employee, you’re able to claim back these expenses as a deduction against your business income.
What can I clam back as a business travel expense?
To help you stay HMRC compliant while claiming tax relief for your business, we’ve pulled together common travel costs that are eligible as an allowable expense. These include transport and travel expenses, accommodation and meals.
The golden rule when making a claim: to be classed an ‘allowable expense’ the cost must incur while running your business and be used wholly and exclusively for the needs of your business. You’re able to claim travel expenses if the travel and associated costs are classed as necessary for business purposes.
Business travel and subsistence expenses
As a self-employed individual, you can claim back business travel expenses that incur while traveling for work. These include:
• Public transport fares - you’re able to claim expenses for train and bus fares which incur while you’re traveling for work purposes. These costs must occur wholly and exclusively while travelling to meet the needs of your business. You can’t claim for travel costs for personal use.
• Car Expenses - If you decide to use your own car you may be eligible to claim any fuel, parking fees and electric charging costs that incur as an allowable expense. If you’re unsure on exactly what you can claim why not use the HMRC’s guide?
• Rental car expenses - If you rent a vehicle for business travel you may be eligible to claim the rental costs as an allowable travel expense. Be sure to keep evidence and receipts to show the cost and length of renting.
• Hotel expenses – You’re able to claim the cost of hotel accommodation as an allowable expense if you have to stay overnight.
• Meal expenses – Yes you can make a claim on meals bought while travelling. However, there are daily allowance rates for subsistence costs incurred while business travelling. There rates are subject to change, so be sure to check for updates regularly.
Travel Expenses FAQs
How do I claim travel expenses?
In order to claim your business travel expenses as a self-employed person you’ll need to keep a clear and comprehensive record of all incurred costs. This includes keeping relevant copies of any invoices or receipt as proof to accurately report these on your tax return.
For example, if you’re claiming tax relief on mileage for business travel you will need to provide a mileage log as evidence. Similarly, if you’re claiming the use of public transport as an allowable expense, you’ll need to be able to show any relevant evidence of ticket costs and fares.
It's crucial that you make yourself aware of the specific rules and regulations set by local tax authorities and government.
How much do you get per mile for travel expenses?
It depends on your mode of travel. If you’re travelling by car or van, you’re able to claim 45p per mile for the first 10,000 miles, reducing to 25p for each mile after. For motorcyclists you’re able to claim 24p per mile, with push cyclists claiming 20p per mile. HMRC can help you work out your specific milage allowance, allowing you to claim the correct amount per mile. Your mileage rate covers the costs associated with your running and maintaining your vehicle, including any repair work, insurance and MOTs.
How much do you get per mile for travel expenses?
It depends on your mode of travel. If you’re travelling by car or van, you’re able to claim 45p per mile for the first 10,000 miles, reducing to 25p for each mile after. For motorcyclists you’re able to claim 24p per mile, with push cyclists claiming 20p per mile.
Can I claim expenses for travelling from my home to work?
To put plainly, no. This is because HMRC doesn’t view the cost travelling from your home to your place of work as a business expense.
What are the HMRC guidelines for travel expenses?
To make the most of tax exemption and saving money on your income taxation its worth spending time familiarising yourself with HMRC’s guidelines on claiming taxable allowance. You can find specific guidance on travel expenses here.
If you’re unsure on which expenses may be eligible, we’d advise you contact a qualified tax accountant or other professional to ensure compliance with HRMC guidelines.
Need more information on other types of allowable expenses related to running a business? Check out our guides on office allowable expenses and employee expenses. Check out our full guide on allowable expenses and stay on top of your taxes.
Now that your clued up on claiming your allowable travel expenses, you can head over to gov.uk website to submit any relevant claims. Need some guidance on staff or office allowable expenses? Visit our allowable expenses article for all the information you need.
All links are checked and valid at time of publishing, 17 December 2024.
