Claiming travel & subsistence expenses when you’re self employed
Claiming travel & subsistence expenses when you’re self employed
Travel and subsistence is something we get asked about a lot. It’s a very grey area which can be confusing if you don’t know what you can and can’t claim for when it comes to your tax deductible expenses.
As you have to eat and drink in order to survive, food and drink can’t wholly be treated as a business expense. However, there are exceptions.
Business trips outside of your working pattern
If your day to day job is usually based on work premises or at home then you may be eligible to claim for tax deductible expenses when your work pattern alters, such as an overnight business trip. If your usual work pattern is travelling around, such as a courier service or taxi driver, then these costs would not be tax deductible as it’s the nature of your business.
Commuting
If you have to travel from home to your business premises then this is classed as commuting and therefore it’s not tax deductible.
If you usually work from home but need to travel for work occasionally then your mileage would be an allowable expense.
Mileage
If you use your own car for business purposes you can claim as follows:
Cars/Vans £0.45 per mile for the first 10,000 miles and £0.25 per mile thereafter
Motorcycles £0.24 per mile regardless of the mileage
Bicycles £0.20 per mile regardless of the mileage
This tax relief doesn’t just cover the fuel, it also covers
- Electricity
- Road Tax
- MOT
- Repairs
If you use a company car for business then you must keep a copy of all of your receipts for fuel as you can claim it as a tax deductible expense.
Overnight stays
Overnight stays must be justified and essential to your work. You can claim the cost of your hotel as a tax deductible expense but the cost must be reasonable. You are also allowed to claim back the costs for food and drink whilst working away but again if challenged by HMRC you must be able to prove that it was wholly for business purposes and that the costs were essential.
If you’re unsure of where you stand when it comes to your business expenses, it’s best to seek advice from a bookkeeper.
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