Can an employed person claim tax relief on business related travel?

Employed individuals in the United Kingdom can claim tax relief on certain business-related travel expenses from HMRC (Her Majesty’s Revenue and Customs). However, it’s important to note that tax legislation and rules can change, and it’s always a good idea to consult with a tax professional for the most up-to-date guidance. Tax relief on business related travel is applicable (only) when travelling to a Temporary Worksite. We have detailed below a general overview based on current rules (as of January 2024):

Business-Related Travel Expenses Eligible for Tax Relief:

  1. Mileage Allowance: If you use your own vehicle for business-related travel (not commuting from home to your regular place of work), you may be eligible for tax relief on mileage. HMRC provides approved mileage rates for different types of vehicles.
    1. Cars and Vans = 45p per mile for the first 10,000, 25p per mile over 10,000 miles
    2. Motorcycles = 24p per mile
    3. Bicycles = 20p per mile
  2. Public Transportation Costs: Expenses related to public transportation for business purposes, such as trains or buses, may be eligible for tax relief.
  3. Accommodation: If your job requires you to stay overnight for business purposes, accommodation expenses may be eligible for tax relief.
    1. You can also claim a Meal Allowance and an allowance for Personal Incidentals

How to Claim Tax Relief:

To claim tax relief on business-related travel expenses, employed individuals in the UK typically have a few options:

  1. Employer Reimbursement: If your employer reimburses you for business-related travel expenses, you may not need to claim tax relief separately. Your employer should handle the reimbursement, and it won’t be taxable income for you.
  2. Claiming via Self-Assessment Tax Return: If your employer does not reimburse you for the full cost or allowance related to your business-related travel expenses, you may be able to claim tax relief by including these expenses in your self-assessment tax return.

Important Considerations:

  1. Record Keeping: It’s crucial to keep detailed records of your business-related travel, including receipts and documentation, as HMRC may request evidence to support your claim.
  2. Employer Policies: Check your employer’s policies regarding reimbursement and tax relief for business-related travel. Some employers have their own processes for handling these expenses. You can claim tax relief with HMRC on the difference if your employer does not reimburse the full cost or allowance.
  3. Changes in Tax Regulations: Tax regulations can change, and eligibility criteria may be updated. Always refer to the latest guidance on the HMRC website or consult with a tax professional for the most accurate information.

For the most current and personalised advice based on your specific circumstances, it’s recommended to consult with a tax professional, such as Go Tax Refunds.