Have job; will travel!

Now many of the restrictions to travel are lifting, everyone seems to be booking holidays. However, a holiday is not the only reason people travel, business travel is now less hassle and the sales force is back on the road (or in the air).

That's good for business as personal relationships often result in better sales figures and video meetings are not quite the same (even though far less expensive). So if your employees are travelling for work it's important to know what they can and can't claim as expenses - and the implication of what they're reimbursed for.

Travel

The statutory 45p per mile still applies, up to 10,000 miles - and this hasn't increased with inflation! As long as business trips are 100% for business, then airfares, taxis, train fares, etc. are all claimable as legitimate expenses.

However, if you're taking a partner along for a hybrid business/holiday, none of their travel expenses can be claimed.

This applies to overseas company meetings too. Even if partners are invited and paid for by the company, their travel costs are private and are therefore taxable as benefits in kind. 

Eat, drink and be merry

Food and drink are a grey area. If your employee has to stay away in a hotel for business, they have to eat, which makes it a reasonable claim against tax - as long as it is 100% for business purposes.

The emphasis is on the word 'reasonable'.

Interestingly, the term 'reasonable' varies depending on the status of the employee. A director would expect to stay in a good class of hotel, while a more lowly employee might find a budget hotel does the job.

Theoretically, there is a scale rate that applies to subsistence expenses where the employee does not need to retain evidence of the amounts spent. However, as long as evidence is retained and the expense is reasonable, it's unlikely they'll be challenged.

Other expenses

We're back to that word 'reasonable' again. If travel requires COVID tests then these can reasonably be claimed as expenses. 

Don't wait until the end of your tax year to work out what tax you need to pay on business travel, keep track and ensure that the correct tax and NI payments are made.

If you or your employees are planning a business trip that is jointly business and personal travel, it's wise to consult your accountant for advice on what you can and can't claim.