Business Travel and Subsistence
You can't get tax relief for the cost of travelling from your usual place of work, however, you can deduct the cost of business journeys - whether in the UK or abroad - as well as the related costs of accommodation and meals.
The type of expenses that can be claimed are:
- Travel costs (e.g. train tickets or air fare)
- The cost of using your own car BUT only if your employer paid you less for doing so that the HMRC Approved Mileage Allowance Payments (click here for the HMRC approved amount)
- Accommodation and meals while you were away on business
If your employer pays for your spouse to accompany you on a business trip, the cost may be allowable if:
- They have, and use, practically associated with the trip; or
- If their presence is necessary for the essential business entertaining of overseas trade customers; or
- If your health is so poor that is unreasonable to travel alone. Note that only a proportion of the cost may be allowable in this instance.
You can also claim other business expenses relating to the journey such as business phone calls and photocopying charges.
The 24 Month Rule
A workplace is not a temporary workplace if the employee attends that place:
- In the course of a period of continuous work at that place
Lasting more than 24 months; or
- When it is reasonable to assume that it will be in the course of such period
- The broad effect is that a place at which the employee can expect to work for a period exceeding 24 months is treated as a permanent workplace from the outset.
Other Expenses and Capital Allowances
Only 'necessary' expenses can be deducted, expenses that other people doing your job would need to pay out. Theses have to have been paid out in doing your job, not getting you to a position where you could do your job.
Entertaining Expenses
You are not usually entitled to tax relief for any business entertaining expenses, but, exceptionally, if your employer:
- Has put a tick against 'entertainment' on your P11D, and
- Those expenses were absolutely necessary in carrying out your job, and
- Your employer has either reimbursed you or paid you an allowance for entertaining
Capital Allowances
You may be entitled to capital expenses (tax allowances for depreciation) for your costs of equipment on so on in your employment. This is not allowed for a car, van, motorcycle or cycle.
Professional Fees and Subscriptions
Fees to professional bodies are allowable provided membership is required for your job. Annual subscriptions to organisations that are approved by HMRC can also be claimed, provided that they are relevant to your work.
Fixed Deductions for Expenses
Fixed deductions are amounts of flat rate expenses that are agreed between HMRC and the relevant trade union, or other bodies, to cover the costs of maintaining or replacing tools or special working clothes. You do not have to be a member of the union to receive the deduction. This may be in your PAYE notice of Coding so please check if your coding notice shows an adjustment for these expenses for an earlier year. If unsure, please mark the relevant question below.
You may want to deduct the actual amount you spent on tools or special working clothes, rather than the fixed rate amount.