Travel and Subsistence
Understanding which travel and subsistence expenses can be claimed is a key part of effective business accounting. For contractors, freelancers, limited companies, and even employees, the difference between allowable expenses and disallowed claims can significantly affect your tax position.
At My Tax Consultants, we provide clear guidance and tailored support for clients who need help managing, recording, and claiming travel and subsistence costs. With HMRC tightening its approach to these claims, accuracy and consistency matter more than ever.
What Is Travel and Subsistence?
Travel and subsistence refer to the legitimate business expenses you incur while travelling for work. This includes transport, accommodation, and meals when travelling to a location that is not your regular workplace. The rules vary depending on employment status, contract terms, journey type, and travel duration.
Business travel must be temporary and necessary for your work duties. Commuting between your home and permanent place of work is generally not allowable. However, travel to temporary worksites, client meetings, or off-site events often qualifies for relief. Meals and overnight accommodation may also be included if they are directly tied to your business travel.
Our team helps you apply these rules correctly and avoid common mistakes that could lead to HMRC rejections or penalties.
Who Can Claim Travel and Subsistence?
Different rules apply depending on how you’re working:
- Self-employed individuals can typically claim allowable expenses against profits, including mileage, train fares, and meals related to business travel.
- Limited company directors may claim expenses and receive reimbursement through the company, provided they are business-related and properly documented.
- CIS subcontractors can claim travel and subsistence on their tax returns under certain conditions.
- Employees using their own vehicle or covering their own travel can also claim if the expenses meet HMRC’s criteria.
We help assess your situation and make sure your travel and subsistence claims meet all the required conditions.
Managing and Recording Expenses
HMRC expects accurate records for every expense. This includes dates, receipts, mileage logs, reasons for travel, and evidence that the travel was for work. A casual approach to claiming these costs can lead to disallowed expenses and future audits.
Our accounting team can assist in setting up a reliable expense recording system, so your travel and subsistence claims remain clear and justifiable. We’ll advise you on acceptable limits for meals and overnight stays, and how to separate personal and business use, especially when using your own vehicle.
Tax Relief and Reimbursement
You may be entitled to tax relief if you’ve paid for business travel and subsistence from your own pocket. The method of claiming depends on your employment status.
- For employees, this is usually claimed through a P87 form or self-assessment tax return.
- For limited company directors, the company may reimburse the expense directly if it’s wholly and exclusively for business purposes.
- For sole traders, travel and subsistence can be deducted as part of business expenses.
We guide you through the correct claim routes and ensure the amounts are submitted properly and with full records, so you get the tax relief you’re entitled to without complications.
Why Travel and Subsistence Matters
Misunderstanding the rules around travel and subsistence can lead to inaccurate tax filings, rejected claims, or even an HMRC enquiry. At My Tax Consultants, we help you take the guesswork out of expense claims. Our team offers practical advice based on HMRC guidelines and your individual working arrangements.
We work with sole traders, limited companies, contractors under CIS, and employees who need assistance with their tax filings and expense claims. Whether you’re travelling for a short-term contract or a long-term project, we help make sure your claims are correct and backed by the right paperwork.
Let’s get your expenses right
Claiming travel and subsistence correctly shouldn’t be complicated. Speak with My Tax Consultants today to make sure your records are accurate, your claims are compliant, and your tax returns reflect every eligible cost.
Contact My Tax Consultants now for expert advice on travel and subsistence.
