Travel and Subsistence Expenses

Looking to cut down your tax bills? We don’t blame you, and that’s what we’re here for. In this quick guide we’re sharing some invaluable advice on how to claim all of the travel and subsistence expenses you’re entitled to, which can significantly reduce your tax bill over the course of a year.

What are travel and subsistence expenses?

If you travel for work (aside from your daily commute), some of the costs involved will qualify as business travel expenses. These include travelling from one place to another, accommodation, sundries such as laundry and dry cleaning for work purposes, and even your meals whilst away. If you’re an employee of a business, which includes company directors, you should be able to claim tax back on most or all of these expenses.

Plan your trip beforehand

Obviously you’ll organise your route, train tickets, hotel and meeting spaces prior to leaving, but best practice is to plan the financial side of the trip beforehand too. This involves making an itemised list of all expenses likely to be incurred and how much they will come up to, including VAT where applicable.

If you’re the employer, you are obliged to pay taxes and National Insurance contributions to HMRC on certain travel costs for your staff. This may include plane and train tickets, hotel rooms, food bills or a per diem, parking fees, bridge tolls, business phone calls, and so on. To find out more, get in touch with our team of qualified tax consultants today.

What can be claimed?

Here are a few expenses that can be claimed as travel and subsistence by employees:

• Mileage allowance: Work-related travelling outside of the daily commute can be claimed back as long as they fall within a fixed amount agreed by the employer.
• Temporary workplace: Employees can claim back the cost associated with a temporary workplace, such as a hot-desking space in a city that they need to visit for business purposes. A temporary workplace is anywhere that the employee works for less than 40% of their overall work time for less than two years.
• Travelling to meetings: If travel is required to visit a client or an industry event, these travel expenses can also be claimed.
• Accommodation: Overnight stays and their associated costs (such as accommodation, meals and sundries) can be claimed by an employee. All expenses require receipts and the employee will need to pay tax if they go over the agreed limit.

Expert tax advice pays for itself

Though the above information seems relatively straightforward, mistakes can often occur. That’s why seeking the advice of a professional accountant, tax consultant and business advisory specialist like TreyBridge brings such a strong return on investment, as we’ll ensure you remain compliant whilst saving as much money as possible on your tax bills.

We can help you cut down your tax

For tailored tax consultancy and planning services designed to reduce your tax bills, call our Northern office on 01482 235575, our London office on 0207 885 0605 or fill in our contact form.