Now we are out and about again here are some notes on what may be claimed tax free, when travelling on business.
A business journey does not include home to work travel, unless to a temporary work place, or in a company van.
- If travelling on business, in your own vehicle then you can claim mileage tax free, at HMRC rates. It is expected that your employer will reimburse you for traveling on their business, but if you have not been reimbursed at HMRC approved rates then you may claim the difference on your personal tax return –if reimbursed more then the excess is taxable income.
HMRC mandatory mileage rates for travel in your own vehicle
Cars & Vans – 45p per mile for first 10,000 miles in the tax year
– 25 per mile thereafter
Motor cycles – 24 per mile
Bicycles – 20p per mile
- If carrying a business passenger in your own Car or Van – then you can be reimbursed an extra 5 pence per passenger per mile tax free
- If using a company vehicle then HMRC provide advisory fuel rates that may be used to either reimburse the employee tax free for business miles, or for the employee to reimburse the company for private use in order not to generate a table benefit.
Advisory fuel rates are variable and change quarterly. They can be found at https://www.gov.uk/guidance/advisory-fuel-rates
- Costs incurred
If you personally have incurred costs when travelling on business, then the actual cost may be reimbursed upon production of a receipt. It is of course much better for the employer to have paid direct e.g. use a company debit card, but if you have paid personally the you can be reimbursed.
E.G. – Rail, bus, tax, air fares
– Parking, tolls, congestion charges
– Meals for staff (not entertaining others)
- Benchmark rates
- a) HMRC have given us daily benchmark rates we may use to claim for subsistence when travelling in the UK. These may be used instead of claiming actual costs of meal and coffee stops etc.
- 5 hours – £5
- 10 hours – £10
- After 8pm – Extra £10
- 15 hours and past 8pm – £25
- b) HMRC have given us scale rates we may use to claim for accommodation and subsistence when traveling outside of the UK. These may be used for a whole trip or piecemeal instead of claiming actual costs incurred, per element. Rates are specified in currency per county & city and can be applied from landing through to departure. To look up the rates for your destination visit https://www.gov.uk/guidance/expenses-rates-for-employees-travelling-outside-the-uk
- c) HMRC have given us a tax-free allowance for incidentals when staying away on business e.g. phone call home, emergency toothbrush, night cap etc. This could be used to cover incidentals on a hotel bill but can also be claimed in full as a tax free sum. However, if exceeded then all becomes taxable. This overnight allowance is
- UK stays – £5 per night
- Overseas stays – £10 per night