One area that we are frequently asked about is what travel expenses can be claimed. The rules are somewhat different depending on whether you are self employed or an employee/company director and can summarise the rules as follows:
Self-employed
| Allowable | Not Allowable |
| Travel outside normal commute to/from work base | Normal commute to/from work base |
| Food & drink on journeys outside normal pattern of work | Food & drink on journeys as part of normal pattern of work |
| Overnight accommodation on work journeys | Parking fines, speeding tickets & other penalties |
| Dinner & breakfast when staying overnight | Travel costs not exclusively for work |
Therefore, you must firstly determine your work base. If you rent an office or working space then that will generally be your work base. If you work mainly from home, or rent a working space but are generally out and about, such as a plumber, then your home may be considered your work base.
Generally, alcohol will not be allowed unless it is
- purchased with a meal, and
- is reasonable (one drink or a half-bottle of wine)
Employed/company director
| Allowable | Not Allowable |
| Travel other than commute to/from permanent workplace | Normal commute to/from permanent workplace |
| Food & drink on work journeys outside normal commute | Parking fines, speeding tickets & other penalties |
| Overnight accommodation on work journeys | Travel costs not exclusively for work, ie travel cards also used for private travel |
| Dinner & breakfast when staying overnight |
A permanent workplace is anywhere where you work regularly, ie at least once a week, on a long-term basis. If you are travel somewhere to carrying out a short-term task then it is a temporary workplace, unless:
- you spend or expect to spend more than 40% of your time there for a period exceeding 2 years, or
- it is your only workplace during your period of employment.
These rules are changing from April 2016 to make the rules applying to workers operating through an umbrella company through a personal service company more strict, thus limiting the amount claimable.
All expenses reimbursed by the company must be reported by the company on a P11d, and both the reimbursement and also a claim for deduction (if allowable) must be included on the individuals self assessment tax return. This is being simplified from April 2016 from when it will no longer be necessary to report allowable travel expenses.
Both Self=Employed and Employed
The rules relating to travel are complex, and you may wish to speak to ourselves or your own tax adviser on these issues before making any claim.