Are travel expenses tax deductible?

20 April


Your business should always be on the lookout for ways to protect margins.

One of the simplest – and most effective – ways to do so is to understand and control your expenses and tax-deductible acquisitions.

HMRC is willing to knock certain purchases that businesses make off their tax bill, and many examples of these expenses are linked to travel. Work related travel expenses tax deduction is a process worth knowing about, and we explain a bit more for your benefit below.

Vehicle mileage

You’ll be happy to know that travel to and from work-related meetings is indeed tax deductible when you’re driving a vehicle. In order to save precious pennies on your fuel, you will need to keep track of mileage, or use a resource such as the Allstar fuel card to log expenses automatically.

Travelling to meetings, visiting clients, and venturing out to conferences all fall within the eligibility criteria. Commuting to and from work, on the other hand, cannot be claimed for. 

Food and drink

Everybody’s got to eat. If you’re embarking on business travel or staying over at a hotel, you may be able to claim back money that you spend on accommodation and food to keep you going.

Be warned, you’ll need to remain within the spending limits to qualify for tax-deductible subsistence. HMRC won’t be happy to give you back cash you might have splashed on a lavish five-course dinner for yourself. However, picking up food at a networking event or having a cup of coffee with a client will often be fine to claim back for.

Other transportation

In many instances, your company will be able to claim money spent on public transport like planes, trains and buses, as well as congestion charges and toll fees.

It’s also worth noting that while there are several types of tax-deductible travel expenses, there are some forms of travel you won’t need to report at all. One example is occasional taxis booked following late-night office shifts. Lending/hiring bikes and cycle equipment to staff doesn’t need to be logged as an expense either – provided they are used primarily for work purposes.

Save money with an Allstar fuel card

Cars are the most popular form of business travel in Britain, and every business has different vehicles, travel needs and fleets. That’s why saving money on travel involves adopting a more personalised approach.

At Allstar, we have a selection of fuel cards designed specifically to help you cut back on spending and tax payments. There are options for businesses with exclusive HGV fleets, mixed fleets, small fleets, and unleaded fleets – so no matter the nature of your company, you can pick up a fuel card that’s built around you.

Get in touch on 03300 375 665 and our team will return the call at a time that suits you, answering any questions you may have.

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