are travel expenses taxable uk

Travel and Subsistence Expenses HMRC – All you Need to Know About It

What are travel and subsistence expenses.

Travel and subsistence expenses are incurred when an employee travels for business purposes from one place to another. It includes the cost of travelling, meals, accommodation, laundry, and other related expenditures .

Since subsistence is considered a cost associated with business-related travel, it falls under the same category.

As an employee, when you are travelling to another location as a part of your job, you are qualified for a certain amount for your travel and subsistence expenses depending on your working rank or designation.

However, before the actual travel begins, employees have to provide a list of expenses that can be possibly incurred during travel. These particular expenses are qualified for reimbursement if you are working for an organisation or a company.

However, If an employee spends over limits on travel and subsistence expenses, they have to pay that cost from their own pockets.

Being an employer, you are obliged to pay certain taxes and National Insurance NI contribution to HMRC on the travelling costs of the employees. That cost includes:

Travelling costs such as train tickets or flight tickets.
Reimbursement of travelling expenses.
Accommodation costs such as Hotel if the employer needs to stay overnight.
Food costs and other subsistence expenses such as parking charges, tolls, congestion charges and business phone calls

A Change in Subsistence Expenses

As of April 2019, HMRC no longer requires businesses to provide receipts for every cost incurred as part of a business journey. the employee will just need to prove that they’re on a business trip when the expenses were incurred. So, if an employee on a business trip eats three meals, they actually only need to provide proof (a receipt) for one of those meals.

However, things to keep in mind:

This doesn’t apply if you use specially-agreed custom allowance rates
It also doesn’t apply if you follow industry-agreed rates

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Unclaimable Travel and Subsistence Expenses

There are certain costs and expenses that are not under the category of travel and subsistence expenses and therefore, you cannot claim those expenses for reimbursement from your organisation.

Unclaimable expenses include

Daily Travelling Expense – the amount you spent on commuting from your home to the permanent workplace regardless of time and distance. However, If an employee has to travel some extra distance for the purpose of work, the cost spent on the distance can be claimable.

Personal Vehicles — if the employee has purchased a personal vehicle on loan or through capital allowance , both amount respectively doesn’t come under the travel and subsistence allowance and hence, is unclaimable.

As per HMRC, employees are entitled to tax-free reimbursements for their business travelling. The employee has both options; get paid by the employer tax-free or the employee themself can opt for tax relieves on any shortfall via their tax return.

Claimable Travel Expenses

Mileage Allowance

HMRC has allowed the usage of personal vehicles for work-related travelling on fixed amounts. These fixed amounts should be approved by the organisation first, and then can proceed with the claim. However, if the employee incurred over the fixed amount, they should pay the exceeding amount on their own. However, if the employer doesn’t pay the Approved and fixed allowance, the employee can claim the full amount spent on the travel.

VAT on Mileage Allowance: If your organisation is VAT registered and does not use flat rate VAT accounting, it can claim back the VAT on the fuel element of the mileage allowance.#

Workplaces

Temporary workplace.

the employee can claim the incurred cost spend at the temporary workplace. A temporary workplace is where the employee spends less than 40% of work time or has spent less than 2 years.

Permanent Workplaces

An employee cannot claim the daily expense of travelling from home to the permanent workplace. But there are some exceptions such as:

If you frequently travel from one place to another for work-related purposes such as meeting clients, you can claim the expenses spent on your travel. The important thing to keep in mind is that only those expenses would be qualified for a claim if your travel journey is different from usual travel to the workplace.
If you have to travel on an urgent basis; if there is an emergency call-out service, the employee can claim the expenses incurred for that emergency travel.

Extensive Travelling

Frequent travelling could be a part of the job. In such cases, the employee extensively travelling from one place to another have the right to claim the expenses incurred during his travel. However, the employer should make sure that the place where the employee is travelling, should not fall under the permanent workplace category.

Hotel and Subsistence Expenses

Any expenses incurred by the employee on accommodation, meals and drinks, sundry charges such as laundry etc are obliged for the tax to HMRC. The employee is accountable to HMRC in case there are any inaccurate expenses in the bills. Companies may choose to allow employees to go over the limits, but they’ll have to pay tax every time they do.

Scale Rates for Subsistence Expenses

HMRC has set the standard rates for subsistence payments known as “scale rates for subsistence expenses”. The employees, If claim their expenses as per these scale rates, their payments will be free from tax and National Insurance contributions.

Breakfast Rate

you can claim a tax-free breakfast price of up to £5. However, this tax-free rate is claimable only if you had breakfast before 6 am and leave your current accommodation place before the usual time.

Meal Rates:

you can be paid the price of one meal up to £5 if you are away from your place of stay and workplace for more than 5 hours.
Similarly, you can be paid the price of two meals up to £10 if you are away from your place of stay and workplace for more than 10 hours.
You can be paid the price of the evening meal up to £25 if you leave your workplace after 8 pm or later than the usual working hours.

Above mentioned Benchmark scale rates are only qualified for the following conditions:

the travel must be part of the employee’s job or to a temporary place of work.
the employee should be absent from their normal place of work or home for more than 5 hours or 10 hours.
the employee should have incurred a cost on a meal (food and drink) after starting the journey.

Travel and Subsistence Cost as an Employer:

An employer is obliged to pay certain taxes and National Insurance on the reimbursements they made to employees for their Travel and subsistence costs. It includes costs of Travel, reimbursing travel, accommodation, and cost of utilising Public transport. Also, subsistence costs such as meals, drinks and laundry charges. The employer should take care of all these costs and should accurately report to HMRC.

In case, your employees are using public transport, its costs include the following:

Seasonal Tickets

If directly provided to the employees:

As an employer If you provided your employee with a seasonal travelling ticket, you should report the cost of a ticket to HMRC via filing up the cost on the form P11D. ticket cost should also be included in the earnings of the employees and Class 1 National Insurance should be deducted via the employee’s payroll.

If reimbursement is paid for seasonal tickets:

If your employees purchase seasonal tickets on their own, as an employer, you have more than one option for reimbursement such as

you can cover the ticket costs by providing an additional allowance to the employee
You can increase the salary of the employee,

However, the cost of the seasonal ticket is counted as earnings, so the employee is responsible to pay taxes and class 1 national insurance through their payroll.

Loan for seasonal tickets

If an employee is provided with a loan by the employer for a season ticket, it should be considered as any other common loan and therefore, the employer has to pay national insurance and certain taxes on it. However, there are some interest-free loans such as beneficial loans etc.

Contribution to Providing Facilities to Employees

As an employer, if you are paying a certain amount for facilitating your employees, you are not obliged to report these amounts to HMRC and neither have to pay any tax or National Insurance contribution on it. For example, if you are contributing to financing a bus route to reduce the travel distance for your employees, you are under no obligation to pay any type of tax.

The complicated reimbursement process has made it difficult for employers and employees alike. Those who are employed through an intermediary body like an agency or umbrella company might spend quite some time on their business travel expenses while trying to figure out how much is eligible in subsistence costs (and what’s not).

Consequently, it’s important for small business owners and entrepreneurs to establish processes with specialised accountants so that they can file claims quickly when necessary. However, If you are in search of a Specialised Accountant, Clear House Accountants have a team of expert and professional chartered accountants with years of experience. The team at Clear House Accountants take care of all type of tax obligations, and National Insurance contribution.

Jibran Qureshi

Managing Director

+44 (0)207 117 2639

[email protected]

chacc.co.uk

Jibran Qureshi FCCA is the Managing Director of Clear House Accountants and has over 13 years of experience in practice across multiple industries. Jibran’s educational background includes a Master’s in Financial Strategy from Oxford University and an Executive MBA from Hult International Business Schoo l. His experience in Financial Strategy, Tax Planning, Operational Consultancy and Performance Reporting guide his cognizant approach to leading Clear House and its clients to the future. This dexterity led him to be Enterprise Nation’s Top 50 Advisors. Jibran recognised the need to manage the innovative disruptions sustainably early on and shaped Clear House Accountants not just to be compliance specialists but advisors who help build complex ecosystems around cloud accounting software, provide advice on funding support, help manage innovative tax schemes, set up and implement complex strategic plans, and much more. So, his clients can thrive, not just survive .

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Guide to hmrc subsistence allowance & expenses, what is a subsistence allowance, how do hmrc subsistence rates work.

The cost of food or drink must be incurred after the business trip has started
The trip must be beyond their usual commute and be done as part of official business.
The journey must take the employee away from their normal place of work for 5 hours or more.

Is meal allowance taxable?

a meal or beverage is not purchased
the meal does not constitute additional expenditure
the “staying with friends or relatives allowance” is claimed
meals have been taken at home
meals are provided during a training course, conference or similar activity
meals are provided on the train or plane and included in the ticket cost

What are the HMRC domestic subsistence allowance rates?

£5 for travel of 5 hours or more (£10 supplement if travel is ongoing at 8pm)
£10 for travel of 10 hours or more (£10 supplement if travel is ongoing at 8pm)
£25 for travel of 15 hours or more (and ongoing at 8pm)

Overnight accommodation rate UK

Meal allowance rates overseas, how does a business report subsistence allowance spend.

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The rules on travel and subsistence: a long and winding road

Employment tax.

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As our working patterns shift and more of us move to hybrid working, what impact will this have on claiming tax relief for travel and subsistence expenses?

What is the issue?

While travel and subsistence is an area of compliance that seems straightforward on the face of it, it can actually be extremely complex for employers to understand and get right.

What does it mean for me?

Key considerations include rules concerning permanent and temporary workplaces, ordinary commuting and working from home. Make sure your policies are clear on what travel and subsistence expenses employees can claim.

What can I take away?

With the move to widespread hybrid working, we expect to see HMRC increasing its focus on these types of travel and subsistence expenses.

The coronavirus pandemic has significantly changed the way we work. Homeworking has become the norm for many more employees who previously spent all or almost all of their time in offices. Millions of us are now working from home for two or three days each week and spending the rest of the working week in the office. Homeworking and hybrid working appear to be here to stay.

That all sounds familiar and straightforward but the nub of the problem is that, for travel and subsistence expenses, even though more employees work remotely and/or are much more mobile than they used to be, the current tax rules covering employee travel and subsistence have not changed substantively since April 1998.

It was widely hoped back in 2016, when the last review of the travel and subsistence rules took place, that some of the shortcomings in the rules might be addressed. But the fact they were not should come as no real surprise, as the 1998 amendment itself aimed to change rules that had dated back some 140 years.

While travel and subsistence is an area of compliance that seems straightforward on the face of it, it can actually be extremely complex for employers to understand and get right. It is no coincidence that HMRC has issued a guidance booklet with over 70 pages to help explain the rules, and that it focuses on travel and subsistence during its reviews of employer records.

In the past, HMRC has undertaken detailed reviews of situations where employees have a workplace at home but also another elsewhere (such as their employer’s headquarters) and the employer meets the cost of journeys between their home and the other workplace; or where the employer is paying travel and subsistence expenses for what they believe is a move covered under the ‘detached duty’ rules allowing for the amounts to be paid tax free. With the move to widespread hybrid working, we expect to see HMRC increasing its focus on these types of travel and subsistence expenses.

Within the current system, there are two main things to bear in mind relating to travel and subsistence.

The first (under the Income Tax (Earnings and Pensions) Act (ITEPA) 2003 s 337) is that tax relief is provided for ‘travel in the performance of the duties of the employment’. In other words, relief is given for travel that is an intrinsic part of an employee’s job and may include journeys between two workplaces. This rule is generally well understood by employers and often applied correctly in practice, but this could change going forward as more employees work from home and employers incorrectly conclude that their employees’ homes are workplaces for tax purposes.

However, it is in relation to the second rule (under ITEPA 2003 s 338) – which provides tax relief for necessary journeys to workplaces that employees must attend for work purposes, apart from those amounting to ‘ordinary commuting’ – that problems most often arise.

Key terms and considerations

The key terms and considerations needed to understand the rules are summarised below. Note that the rules for subsistence are similar to those for travel. If a business journey is allowable for tax purposes, the subsistence cost attributable to that journey generally is also allowable, unless there are issues around excessive expenditure, dual-purpose trips, and round sum or benchmark allowances.

Travel and subsistence expenses which attract tax relief and satisfy the exemption for paid or reimbursed expenses (ITEPA 2003 s 289A) do not need to be reported to HMRC.

Any travel expenses paid by the employer which do not attract tax relief, and which are not exempted by ITEPA 2003 s 289A, will (depending on the circumstances and subject to a PAYE Settlement Agreement being in place to cover such costs) either need to be:

reported and dealt with at the tax year-end on forms P11D and P11D(b);
reported and subjected to tax and Class 1 National Insurance Contributions (NIC) under PAYE at the time of payment; or
reported and dealt with at the tax year-end on forms P11D for tax purposes and subjected to Class 1 NIC under PAYE at the time of payment.

HMRC penalties for non-compliance can be costly. For example, if incorrect P11Ds are filed negligently, a penalty of up to £3,000 per form can be levied by HMRC (although normally only in the most serious cases).

It could also mean that employers are liable for any tax and NIC that has been underpaid, potentially on a grossed-up basis, plus late payment interest. This can get expensive and large settlements have been seen on HMRC compliance reviews covering travel and subsistence expenses, particularly for large businesses. Settlements are often in relation to homeworkers having another permanent workplace and being paid for their travel expenses between their homes and those permanent workplaces; and travel from home to places which are not considered to be a temporary workplace.

1. Permanent workplace

A ‘permanent workplace’ is considered to be somewhere that an employee works regularly to perform their duties of employment. In many instances, it can be clear whether or not somewhere is an employee’s permanent workplace and, therefore, whether a journey to it can be deemed ordinary commuting. It is also possible for an employee to have more than one permanent workplace at the same time.

Travel to or from a permanent workplace and an employee’s home is generally treated as private rather than business travel, and so tax relief is not due on any related costs that are paid or reimbursed by an individual’s employer.

Necessary travel which takes place between one permanent workplace and another while an employee performs their duties of employment during the working day is treated as business travel and attracts tax relief.

2. Temporary workplace

A ‘temporary workplace’ is somewhere the employee attends to perform a task of limited duration or for a temporary purpose. So even if they attend it regularly, it may still not be classed as a permanent workplace.

There is, however, a special rule which treats a workplace that would otherwise be a temporary workplace as a permanent workplace, where an employee spends or is likely to spend more than 40% of their working time at that workplace over a period that lasts or is likely to last more than 24 months (known as the ‘24 month/40% rule’).

Bear in mind that the 24 month/40% rule treats locations that would otherwise be ‘temporary workplaces’ as ‘permanent workplaces’. If the workplace is not temporary in the first place (as it does not meet the definition laid out in the Employment Income Manual at EIM32075), the workplace would already be treated as a permanent workplace.

Travel to or from a temporary workplace and an employee’s home is generally treated as business rather than private travel; and so tax relief is due on any related costs that are paid or reimbursed by an individual’s employer, unless it is substantially the same journey in which case no deduction is allowable (ITEPA 2003 s 338(2)). This is not often considered by employers and very few expenses policies ever have this covered.

Such distinctions can be confusing – and as highlighted above, this is one of the areas of travel and subsistence on which HMRC focuses its attention. Employers often fail to consider the task involved or the purpose for working at a given location, which is what the legislation requires.

The employee’s attendance is not in question; the issue is whether the task itself will be undertaken for a limited duration or whether it is performed for a temporary purpose. The trouble is that many employers fail to look too deeply at the matter and simply consider the ‘24 month/40%’ rule, without first considering whether the workplace is capable of being a temporary workplace.

HMRC may ask for contracts, diaries and job descriptions in order to determine whether the locations visited meet the definition of a ‘temporary workplace’. Covid-19 has also presented a particular issue in that HMRC’s view is that the clock remained ticking even when government gave instructions to work from home where possible, so many employers are likely to find the 24 month period has expired during the last few years while employees have been working from their homes.

It should also be remembered that the word ‘task’ is not defined in the legislation. As a result, the normal dictionary definition applies. Here a ‘task’ is something specific; for example, a piece of work, rather than a group of things to do, which is the nature of a job more generally.

3. Ordinary commuting

For most employees, ‘ordinary commuting’ is the journey they make most days between their home and permanent workplace. Travel and subsistence expenses would normally be taxable here if the costs of ordinary commuting were paid for or reimbursed by their employer, or if travel facilities were provided.

But for some staff, the situation is more complicated. For example, if the journey to a temporary location is broadly the same as an employee’s ordinary commute to their permanent workplace, tax relief would be denied on the basis that the journey is normally treated as private travel.

This rule applies generally if the journey is in the same direction or on the same route, and amounts to less than 10 miles extra each way than the normal commute. This area is rarely explained in most employers’ travel and expenses policies but is again something that HMRC is increasingly focusing its energy on, particularly in major towns and cities.

4. Working from home

A key consideration when moving to a homeworking arrangement is whether the employer will meet the cost of the employee’s travel between their home and the office when they do travel into the office. This is of particular relevance to hybrid working arrangements.

The tax and NIC treatment of employees’ travel expenses can be complex and is particularly difficult to apply practically to modern working practices, such as hybrid working.

HMRC recently updated its guidance covering employees who work from home (EIM01471) to cover hybrid working. It now includes ‘Travel in the performance of the duties: travel to and from home where it is a place of work’ at EIM32370. The clear challenge with hybrid working is that when employees do travel into the office, often the statutory conditions in ITEPA 2003 s 337 will not be met for home to be a workplace for tax purposes, and under ITEPA 2003 s 338 the office will remain a permanent workplace.

Employers must therefore be clear when agreeing hybrid or homeworking arrangements which travel and subsistence expenses can be paid tax and NIC free and which cannot. EIM32174 covers ‘Travel for necessary attendance: employees who work at home: a hybrid working: example’.

In rare cases, ITEPA 2003 s 337 may apply, allowing for tax relief between the home (as a workplace) and another permanent workplace, as covered in EIM32370. The problem with applying ITEPA 2003 s 337 to hybrid working is that in many cases the location of the home isn’t dictated by the requirements of the job. HMRC notes: ‘For most people, the place where they live is a matter of personal choice. So the expense of travelling from home to any other place is a consequence of that personal choice, not an objective requirement of their job.’ The relief in ITEPA 2003 s 337 is therefore unlikely to apply to the majority of homeworking and hybrid working arrangements. It is worth noting that HMRC’s guidance says:

‘Most employers provide all the facilities necessary for work to be carried out at their business premises. So where employees work at home, they usually do so because it is convenient rather than because the nature of the job actually requires them to carry out the duties of their employment there. However, where it is an objective requirement of an employee’s duties to carry out substantive duties at the home address, then his or her home is a workplace for tax purposes.’

ITEPA 2003 s 338 then needs to be considered. This allows tax relief for travel expenses for the necessary attendance at any place in the performance of the duties of employment. To determine whether tax relief is due under s 338 for journeys between an employee’s home and their employer’s business premises, we need to consider whether the employee is travelling to a permanent or temporary workplace (see definitions above).

HMRC often quotes the case of Kirkwood v Evans [2002] EWHC 30 when looking at a ‘working from home’ situation. It concluded that although Mr Evans went to the Leeds office for only one day a week, it was a permanent and continuing part of his duties to do so. The judgment dealt with the situation briefly in a single paragraph, also stating that Mr Evans had conceded that the Leeds office was not his temporary workplace, even though the General Commissioners had concluded it was. The judge justified this view by saying: ‘This attendance was both regular and was not for the purpose of performing a task of limited duration or for some other temporary purpose.’

Perhaps Mr Evans was ill-advised to admit that Leeds was a permanent workplace. It could be argued that he undertook certain specific tasks each time he went there that were of limited duration; namely, delivering work he had performed since his last visit, taking new work with him, and downloading information from a database. On the other hand, HMRC seemed to argue that the word ‘task’ refers to doing these things each week on a continual basis.

There are, of course, also other special rules to consider on top of the above that cover areas relating to international trips, area-based and depot-based employees together with emergency call-outs.

Track mileage automatically

Hmrc travel expenses guidelines, in this article, what qualifies as a travel expense, are reimbursements for travel expenses tax-free, what are per diem rates, travel expenses for employees, travel expenses for the self-employed, travel expenses for employers.

If you are a UK resident who travels for work, your business-travel expenses likely qualify for either reimbursement or tax relief.

HMRC travel expenses guidelines are a somewhat complicated matter, but in this article, we will give you an overview of the things you need to know when you want to claim back money spent on travel that is necessary for work.

The first thing to understand is that not all travel expenses are eligible for tax relief . Notably, HMRC only allows full tax relief on travel expenses that are "wholly and exclusively" for business purposes.

This means that if you mix business and personal travel, you will need to apportion the costs to determine which parts of your trip are eligible for tax relief.

Let's clarify which expenses HMRC recognises as business-travel expenses. These are costs that you incur while travelling for work purposes, such as:

Train, bus, or airfare
Car or van rental
Mileage if you use your own vehicle
Hotel or other accommodation
Meals and refreshments (yes, this includes alcohol)
Parking fees
Tolls and congestion charges

One of the most common of these travel expenses is mileage. If you use your own vehicle for work purposes, you will need to keep a record of the dates and distances you travel for work, as well as the reason for each trip. The Driversnote automatic mileage log book makes tracking these things as easy as can be.

You can read all about best practices and HMRC rules in our complete guide to mileage in the UK .

Mileage tracking made easy

Trusted by millions of drivers

As a rule of thumb, if the expenses were necessary for the work that was done, and if the reimbursement does not exceed the actual expenditure or per diem rates, the reimbursement will be tax-exempt.

You will need to keep records of your expenses as proof for your employer and/or HMRC.

In an effort to simplify the process of tax deductions and reimbursements, HMRC publishes predetermined rates to cover business travel expenses. These can be used instead of being imbursed for the actual costs you incur.

A benefit to per diem rates is that you will not have to save receipts or invoices, you will simply have to be able to prove that you were on a business trip when the expenses were incurred.

There are per diem rates for both travelling within the UK and to other countries. In the UK, the HMRC per diem rates change depending on the duration and circumstances surrounding the trip. For the rest of the world, HMRC has published a list with the rates for countries and/or cities.

It is actually possible to negotiate higher rates than the standard ones set by HMRC. But this will require time and legal work.

If you incur travel expenses while doing your job, you have two channels through which you can recuperate your costs.

The most common practice is that your employer will reimburse you.

If you are not reimbursed in full, or at all, by your employer, you then have the option to claim tax relief on the remaining expenses you incurred because of your business travel.

If you are a sole trader your business-related travel expenses are deductible from your taxable profits. What qualifies as travel expenses and the amounts that can be claimed for them follow the same rules as they would for an employee.

As long as you either reimburse your employees’ actual business-travel-related costs, or pay them after the per diem rate (either the standard one or a bespoke one you have negotiated with HMRC), you will not have to report or pay taxes on the reimbursement, as per HMRC’s website .

You will, however, need to keep records of all expenses and benefits you provide to your employees. This includes records of when and why the travel took place, along with receipts where possible.

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Reimbursements

Employee Travel Expenses in the UK

Business trips are often a welcome change from the daily office routine or working from home. However, they are always associated with costs and subsequent administrative work to settle the corresponding expenses . We provide an overview of what employees need to consider when it comes to travel expenses and how they can best benefit from tax exemption.

What are employee travel expenses?

Travel expenses arise from work-related activities away from the place of residence and the primary place of work. The primary place of work is considered to be the place where the employee works on a regular basis. If companies bear the costs for such business trips by employees, they can be deducted from tax under certain circumstances. If the conditions are met, business trips are exempt from tax. Both the employee and the employer can benefit from this if they provide evidence of the travel costs incurred.

But what kind of costs count as travel expenses? In summary, these are all costs that incur during the trip and serve to ensure its successful completion. This means not only travel costs, but also expenses for food and accommodation to keep up one’s strength. In addition, there are ancillary travel expenses such as parking fees and telephone charges.

Which travel expenses can employees claim?

public transport
hotel accommodation
food, as well as drinks
congestion and toll charges
parking fees
professional telephone calls
printing costs

If these expenses are incurred during a business trip and for business purposes, they can be exempted from tax. Expenses of a private nature that arise during a business trip, for example from a private visit to a museum, cannot be claimed.

Employee travel expenses reimbursement

If employees want to settle their travel expenses, they have several options. The most profitable one: they forward their travel expenses in full to their employer, submit all the relevant receipts , and the employer transfers the total amount to the employee’s account. The employer can then post the expenses and have them exempted from tax.

In case the employer is reluctant to pay for the employees’ travel expenses, they can reclaim the tax from the government themselves under certain conditions. However, to claim back the tax, HMRC has specified certain rules for employees:

The travel expenses exclusively incurred for work-related reasons.
The employee has covered these travel expenses personally.
The employer does not reimburse the employee for the travel expenses.
The employer has not provided the employee with a suitable alternative.
The employee pays taxes.

To benefit from tax exemption on certain expenses, the employee must of course be a taxpayer in the first place. To claim tax exemption for expenses, these must be submitted with supporting documents to HMRC within four years of the end of the tax year in question.

When is the trip a business trip?

To understand under which conditions employees can deduct their travel expenses from tax, it is first necessary to clarify what actually constitutes a business trip – and what does not. For HMRC, there are two permissible types of business travel. Option one: the traveller visits a customer in another city on behalf of the company, for example, to maintain contacts – a time-limited trip that serves a specific purpose. Or the employee travels to a certain location to carry out work: e.g., a construction site or a temporary workplace such as a branch office.

The daily commute from home to the permanent place of work, however, is explicitly not considered a business trip and cannot be recognised for tax purposes. Furthermore, if you do not travel from home to your usual place of work in the morning, but to another place that is the same or a shorter distance away, this travel cannot be exempt from tax either – only business trips that go beyond the usual distance.

Permanent or temporary workplace compared

The duration of the employee’s activity at a specific place of work is the decisive factor for the question whether a trip to work is tax-deductible or not. Commuting to the permanent place of work – for instance, to the office where the employee usually works and which is mostly specified in the employment contract – is not deductible from tax. However, if the employee must work temporarily somewhere else, for example at a branch office in another city, the journey to this place can be claimed for tax purposes. But this only applies for 24 months: if the employee is required to work there for a longer time, the place is considered to be the new permanent place of work.

Reimbursements with Moss: More freedom for your team

When does work from home turn into a permanent workplace?

Since the onset of the corona pandemic in 2020, work from home has become increasingly popular. More and more employers are allowing or even encouraging their employees to work from home. It is becoming very common to let employees choose their preferred place of work themselves. But what does this mean for employees in terms of tax?

It depends: if the employee only works from home because of a personal decision, every trip to the office is considered commuting – and is thus not tax-deductible. But if the employer decides that the employee must work from home – for example, because there is no office at all anymore – the home office is the new permanent workplace. Every trip to another place of work then becomes a business trip and is deductible from tax.

Which travel expenses can be deducted by employees?

Not all kinds of expenses incurred on a business trip are tax-deductible. Private costs arising from a business trip may not be submitted to HMRC. It is not always that easy to distinguish between private and business-related costs – often the transition is fluent. So: what is deductible and when?

The expenses being deductible are:

work-related travel not to or from the permanent workplace
dinner and breakfast when a business trip runs overnight
accommodation costs during a several-day business trip
food and drink on a business trip; either the actual costs or the fixed rates set by HMRC
all travel expenses related to official business, such as: public transport, congestion, toll and parking charges, telephone calls, printing costs, etc.

Non-deductible are:

the regular way to the permanent workplace
travel expenses not strictly related to work, e.g., the private visit to a museum, a sightseeing tour, or recharging a travel card
penalty charges, e.g., tickets for illegal parking or speeding

Costs for food

To keep your strength up on a business trip, daily meals obviously play a crucial role. However, when away from home, it is difficult to cook or prepare food on your own, which is why frequent restaurant visits are customary. But: HMRC does not automatically exempt every restaurant visit. Instead, it has set limits up to which the costs can be deducted each day.

The respective limit depends on the length of the journey.

There is also a cap of £5 for breakfast. For dinner after 8pm the cap is £15.

Business travel mileage

If employees use their own vehicle for business travel, they can, up to certain limits, recover the costs from their employer – who in turn can claim them for tax purposes. Employers can pay the so-called “approved amount” without having to report it to HMRC. These payments are referred to as mileage allowance payments.

The approved amount is calculated by multiplying the employee’s annual mileage by the rate applicable to the vehicle. This rate depends on two factors: the type of vehicle and the total number of miles driven on duty.

Up to the approved amount, the employer can bear the employee’s expenses without having to declare this to HMRC. If, on the other hand, more expenses are covered, these additional costs are considered as employee salary and lead to corresponding tax payments.

If the employer does not pay the mileage allowance payments or not the full amount up to the approved level, the employee can claim the difference for tax exemption – also known as mileage allowance relief. In other words: the employee’s business travel mileage is either paid in full by the employer or the employee can claim tax exemption.

Moss: business travel made easy

Those who have completed a business trip do not want to spend a lot of time afterwards settling their travel expenses, submitting applications to their employer, or having to go through the hassle of declaring them in their tax return.

With Moss, there is a way to help employers to make work easier for their employees: through smart expense and invoice management that makes expense reports obsolete. This is because Moss gives employees the freedom to pay for all work-related expenses independently and responsibly during a business trip using a corporate card . Thus, travellers do not have to lay out the costs for accommodation, food, and transport, but can conveniently pay with a real or with a virtual corporate card – with an individual budget limit precisely tailored to the trip.

All receipts from the trip can be uploaded instantaneously via the web or mobile app – and the tedious expense report becomes completely superfluous. This allows employees to focus entirely on their work from the beginning to the end of the trip. It also saves time for the accounting department.

Reimburse with Moss: Give freedom to your team

Employee travel expenses are costs incurred by an employee on a business trip – for example, for means of transport, meals, or accommodation. The trip must be work-related and the external work assignment must not last longer than 24 months. Otherwise, the travel destination is considered a permanent place of work to which a trip is not tax-deductible.

Employees can either have their travel expenses reimbursed by their employer or submit them to the tax authorities themselves to benefit from a tax exemption. To have the costs reimbursed by the employer, all receipts for the trip must be collected and passed on. If the employee pays the costs personally and is indeed a taxpayer, a tax exemption can be claimed from HMRC.

All costs incurred on a business trip for professional reasons can be deducted – from transport costs to toll and congestion charges or parking fees to meals. This also includes overnight stays, charges for business telephone calls, or printing costs.

If employees use their own vehicle on a business trip, they can either have these costs covered by the employer or have them exempted from tax. The annual amount is calculated depending on the number of miles travelled and the type of vehicle.

For a business trip, you can either claim lump sums for meals or the actual costs – but only up to a certain limit. For a journey of 5 hours or more the limit is £5, for 10 hours or more it is £10 and for 15 hours or more it is £25. Breakfast can be deducted at £5 and dinner after 8pm at £15.

A business trip is defined by HMRC either as a short trip with a clear purpose – such as meeting a client somewhere other than the permanent workplace – or a longer trip to another place of work, such as a branch office. However, the maximum length for such external duty is 24 months.

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Expenses Receipt: What It Is And Why to Collect It

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Travel expenses

Introduction.

Travel expenses have specific tests which must be satisfied in order for an employee to gain a deduction. These rules are different from the general rule for deductibility of expenses in that they do not need to be incurred ‘wholly and exclusively’. This is because with any business travel, there are likely to be elements of mixed or private purpose, eg meals taken on a trip or overnight accommodation because the employee needs sleep. Meals and overnight accommodation come under the heading ‘subsistence’ and expenses on subsistence follow the rules on business travel. See the Subsistence expenses guidance note for more information.

As a result of the exemption for expenses that are either business expenses or the reimbursement of HMRC approved amounts, it is incumbent on an employer to keep the necessary processes, systems and controls to ensure that business and non-business expenses can be correctly identified and recorded.

The NIC legislation on deductible travel expenses is generally aligned with the tax treatment. Therefore, unless

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Join our newsletter, foreign business travel: expenses and allowances explained.

We’re living in a global economy, and if you want to grow your business fast, foreign clients can be a great source of income, as well as a great excuse to see the world. With the increase in people becoming self-employed and online work becoming the norm, there’s never been greater potential to source work from overseas .

Sometimes a big business deal needs a personal touch, and that usually means hopping on a plane to shake some hands in foreign lands. Most business owners will have their domestic business travel sussed – save your taxi receipts, claim your business miles etc. – but international business travel has a few quirks you need to know about.

The same rules apply

HMRC’s house rules for claiming business expenses – that they must be “wholly and exclusively” for business purposes – apply wherever you are in the world.

The requirement to keep proof of purchase is also a worldwide one, so be sure to look up “Can I have a receipt, please?” in your phrase book before hopping in that taxi in Shanghai.

Foreign travel will provide a great opportunity to let your hair down and enjoy a few sangrias by the pool – but the taxman never takes holidays, and if anything, HMRC’s eligibility requirements for allowable expenses abroad are even more strict than at home.

Don’t mix business with leisure

HMRC’s concept of “duality” means any whiff of personal benefit will render foreign travel inadmissible as a business expense.

Want to delay your flight home by a few days so you can take in the historic gothic architecture of Bremen after the 7th International Offshore Wind Power Substations Conference ? Nein! (No) that would mean you can’t claim it back.

Want to bring your spouse along to Stockholm so they can enjoy the hotel gym while you go to Wikimania ? No longer an allowable expense, kompis (for the non-Swedish speaker that means buddy in Swedish!).

It’s not impossible to enjoy a bit of leisure time when travelling overseas for business, but HMRC’s rules are strict and there has to be a clear divider when you close your laptop and open up your Lonely Planet.

Our hapless turbine engineer travelling to Bremen could book outward and return tickets separately, and the conference accommodation and the leisure days as two distinct bookings. They’d then claim for the outward flight and the conference accommodation, and pay for the rest out of their own pocket. Sehr einfach (very easy)!

The enthusiastic Wikipedian travelling to Sweden? Book the spouse’s travel separately, put them up in a different hotel and they’re bra (good!).

A tremendous hassle, but those are HMRC’s rules. Generally speaking, if an invoice , bill or receipt has spending for personal benefit on it, you can’t claim it back.

Spending money

Once you’ve actually arrived at your destination, HMRC’s rules on what you can claim are a little more straightforward.

You can treat foreign expenses exactly as you’d treat domestic spending – just keep the receipt and claim the whole amount back.

If you lose your receipts or want to keep things simple, the taxman has a handy (if huge) list of subsistence rates for every country on Earth , including major cities. It’s important to note these rates aren’t allowances – you can only claim the amounts prescribed by HMRC if you actually incur expenses up to that amount.

If you travel regularly, you’re probably used to juggling exchange rates, and they can make claiming expenses tricky. A €30 taxi ride could cost £20 when you take it, £21 when it comes out of your bank account, and £22 when you come to claim the expense in your accounting software. If in doubt, always use the amount that left your bank account – it’ll make your bookkeeping that much simpler.

It’s almost impossible to go on holiday and not return with a bag full of tourist tat. If you plan to purchase something a little more substantial than a fridge magnet, you can take advantage of lower prices abroad to purchase assets for your business – as long as you pay the correct taxes.

Many countries will allow foreign visitors to reclaim sales tax, either when they leave the country or when they buy (many large malls will have tax reclaim counters). If you purchase a business asset – for example a camera, laptop or some other sizeable piece of equipment – you can reclaim the sales tax. You’ll need to declare the asset when you return to the UK and pay any applicable VAT , but if you’re Standard VAT registered you can reclaim that on your next return.

You’ll save your business a tidy sum, and your new purchase will probably prove much more useful than a bottle of Absolut Vodka and a Dala horse .

If you’re looking for more information on what expenses you can claim then our articles “What expenses can I claim as a limited company?” or “What expenses can I claim as a sole trader?” should be just what you need. Alternatively, for freelancers who prefer their home comforts, we've got a guide on working from home tax relief too.

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Allowable expenses & disallowable expenses in the uk.

Sole traders and business owners can write off certain tax-allowable expenses if they relate to business costs. If you are a small business owner or own your own business, it is important to know what are allowable and disallowable expenses, as you may be able to save some money on your tax bill at the end of the year.

The following article will outline some of the most common legal tax write-offs for UK business owners and sole proprietors.

Key Takeaways

Allowable expenses are not taxable and reduce how much tax you pay on your profits.
Disallowable expenses are taxable and cannot be written off at tax time.
Expenses may be allowable if they are wholly and completely incurred by the normal, everyday costs of running a business.
It is important to keep all receipts and proof when you claim expenses for at least 5 years after filing your taxes in case the HMRC requests documentation.

Table of Contents

What are Allowable Expenses?

Allowable expenses for individuals, allowable expenses for businesses.

What Are Disallowable Expenses?

Disallowable Expenses for Individuals

Disallowable expenses for businesses, how to claim allowable expenses.

Take Control of Your Expenses With FreshBooks
Frequently Asked Questions

Allowable expenses is a term that is used to describe any costs or expenses incurred while running your business that are considered non-taxable by His Majesty’s Revenue and Customs (HMRC). These costs can be deducted from your overall taxable profit amount, which will reduce the amount of taxes you have to pay. To be considered expenses you can claim by the HMRC, they must be used solely for the purpose of running your business and cannot include any personal spending.

There are many allowable expenses self-employed individuals, seeking to optimize their self-employed expenses , can use to reduce their tax payment amount. The following are some of the most common deductions.

1. Travel Expenses

One of the top allowable expenses sole traders take advantage of is travel, including hotel rooms or other accommodation costs, meals on overnight business trips, and train, bus, air, and taxi fares when travelling for work.

2. Uniform and Work Clothing

Clothing expenses like uniforms, protective clothing that is needed for work, and costumes for actors and entertainers are all allowable expenses in taxation.

3. Professional Memberships

You can claim tax relief for any professional membership fees or annual subscriptions to approved societies if it is relevant to your work or if you must pay the fees to do your job.

4. Home Office Expenses

Most types of home office equipment are considered allowable expenses for self-employed individuals if used for less than If you are working from home, you may also be eligible for working from home tax relief , allowing you to claim expenses related to your home office setup.

5. Tools and Equipment

Purchasing and maintaining essential tools required to do your job are expenses allowable for tax deductions in the UK.

6. Training and Development

Training and developing your skills to improve your skills and productivity or further your career path are both considered sole trader expenses that are allowable.

7. Professional Fees

HMRC allowable expenses for professional fees include hiring an accountant, getting advice from a solicitor, or hiring an architect or surveyor for your business.

8. Trade Union Subscriptions

Most subscriptions to trade unions are not deductible unless they are paid to a body approved by the HMRC and the union activities directly benefit the performance of the worker’s duties.

9. Charitable Donations under Gift Aid

A helpful item found on the self-employed allowable expenses list is donation through Gift Aid. When you donate to charities and community amateur sports clubs (CASC), they can claim an additional 25p for every £1 you give (meaning they can increase the value of your donation by 25%) as long as you pay sufficient UK tax.

10. Costs of Buying, Renting, or Running a Vehicle

Vehicle expenses like fuel, insurance, repairs, business mileage, and servicing can all be claimed as expenses that are allowable, as can purchasing or renting a vehicle, but only if it is used for business.

Business owners can write off expenses that are incurred exclusively during the everyday running of their business and paid through the company’s bank account. The following are some common expense claims businesses can make.

1. Salaries and Wages

Employee and staff wages and salaries, along with benefits, pensions, agency fees, cost of hiring subcontractors, National Insurance contributions, and training courses related to business, are all allowable business expenses.

2. Rent and Utilities

Businesses can claim rent on business premises and utility bills as an allowable expense. Even home offices can claim a percentage of the home’s utilities and rent.

3. Office Supplies and Stationery

Regular office costs like phone bills, stationery, printers and cartridges, postage, and other equipment expenses can be claimed as sole trader business expenses, as can computer software if your company uses it for less than 2 years or makes payments to renew the licence.

4. Advertising and Marketing

Expenses like newsprint ads, mailers, free samples, and website costs are considered allowable expenses by the HMRC and can be claimed on your taxes.

5. Travel Expenses

When you or an employee must travel for business, you can claim expenses, including train, bus, air, and taxi fares, fuel costs, reasonable hotel room costs, and the price of meals on overnight business trips.

6. Business Insurance

Business insurance and professional indemnity insurance premiums are deemed as small business and limited company allowable expenses by the HMRC.

If you hire professional accountants, solicitors, surveyors, architects, etc., for your business work or legal costs, you can claim their fees on your taxes.

8. Depreciation

The depreciation amount of fixed assets is only considered allowed expenses in very specific cases. Structure and Building Allowances, cars, certain machinery, and R&D allowances are considered allowable expenses for limited company owners.

9. Bad Debts

If a loan or credit agreement has an unreasonably high interest rate, or there are high fees associated that make it difficult to pay back, it may fall under the UK bad debt provision, making it a deductible expense.

10. Research and Development

When a company engages in research and development (R&D), qualifying activities like subcontractor or freelancer costs, materials, consumables, and more are tax deductible.

11. Training and Development

The expenses incurred by staff training and employee development courses are allowable when they directly relate to the employee’s job. For example, taking a computer course or training on a new piece of machinery.

12. Interest and Bank Charges

You can claim business costs for interest on loans, leasing payments, bank charges, overdraft charges, credit card charges, hire purchase interest, and alternative finance payments.

13. Stock and Inventory Costs

The cost of purchasing goods for resale (stock), raw materials, and the direct costs from purchasing inventory you plan to sell is considered an allowable business expense.

Keeping track of all of your expenses all year long does not have to be difficult. Using helpful accounting software like FreshBooks makes tax preparation and filing much simpler. See the following video to find out more about how FreshBooks can make tax prep easier for you.

What are Disallowable Expenses?

Along with allowable tax expenses in the UK, there are also disallowable expenses, meaning costs incurred by your business that the HMRC does not consider worthy of a tax break.

These expenses may be related to your business, but if they are not “wholly and exclusively” used for business purposes or do not meet the standards of the HMRC, you cannot claim them as deductions.

Any self-employed individual, freelancer, or small business owner can benefit from perusing the following list, which answers the question, “What are disallowable expenses for my sole proprietorship?”

1. Private Expenses

You cannot claim any expenses that are not 100% related to your business, like personal vehicle use, domestic help in the home, or tools used on personal projects.

2. Fines and Penalties

Because fines and penalties are incurred due to illegal activities, the HMRC does not consider them eligible for tax breaks.

3. Non-Business Entertainment

Any expense incurred that is not 100% business-related, or is not a reasonable, normal expense, is not tax deductible. This can include hotel film charges, alcoholic drinks at dinner, or upgrading a flight to first class on a business trip.

4. Gifts and Hospitality

In general, gifts and hospitality are considered as entertainment and are non-deductible. The only exceptions are gifts that cost less than £50 per year per recipient and display a prominent business logo or advertisement.

5. Non-Business Travel

You cannot claim any travelling expenses or costs that are not directly related to business, nor can you claim any money spent on travel between home and work.

6. Capital Expenditure

You can deduct some of the value of “plant and machinery” items like essential equipment, business vehicles, or machinery from your profits as capital allowances.

7. Non-Qualifying Charitable Donations

Any gifts to unregistered or non-qualifying charities (those that do not meet the conditions in the Finance Act 2010, Schedule 6) are not considered eligible for a tax benefit.

8. Excessive Clothing Claims

Everyday clothing is not an allowable expense, even if you wear it for work. It must be specifically related to your job and cannot be worn outside of work for personal use.

9. Non-Work-Related Training

Any classes or training that are not done to improve your understanding, skill set, or ability to do your job are not considered eligible for a tax break.

10. Non-Trade Loan Interest

Interest that is paid on loans based on investments is considered a disallowable expense by the HMRC.

The following are some of the important disallowable expenses for business that all company owners should know. These are expenses that cannot be claimed on your taxes.

The only allowable expenses for employees and employers to claim during tax time are those incurred when paid “wholly and exclusively” for business expenses. If you cannot prove that the expenses are for the business, they are considered disallowable.

Any fines or penalties that are imposed because of law-breaking activities are not tax deductible, although the legal fees paid for defending the actions may be.

3. Entertainment Expenses

The cost of entertaining clients is a disallowable expense for corporation tax purposes, so you will have to cover the cost using your company bank account.

4. Gifts to Clients or Suppliers

Gifts are treated the same as entertainment by the HMRC. Nothing is expected in return from a gift, and it therefore has no business or trade value.

5. Political Donations

Donations to political parties are almost always made for non-trade purposes and are therefore not eligible for tax deductions.

6. Loan Interest on Personal Borrowing

While business loan interest may be eligible, loan interest on any personal borrowing cannot be claimed as a tax benefit.

7. Excessive Directors’ Salaries or Bonuses

When a director of a company is paid more than any other member of the staff, or when they withdraw an amount or receive a bonus that is not appropriate to the financial circumstances of the company, tax relief is not granted by the HMRC.

8. Expenses Not Supported by Documentation

You must always have receipts, invoices, and other supportive documentation when claiming business expenses in case the HMRC conducts an audit.

9. Excessive Expenses Claims

Any claims that go beyond reasonable, everyday costs of maintaining and running a business are considered excessive and are not deductible.

10. Depreciation of Non-Business Assets

You cannot claim the depreciation amount of non-business assets like home computers, personal vehicles, or buildings and land not directly related to the business.

11. Non-Business-Related Travel

Like individuals, businesses cannot claim any travelling expenses that are not directly related to business, including employee travel between home and work.

Follow these steps to claim an allowable expense on your taxes:

Make sure you keep all records of all of your business’s total allowable expenses, like receipts, bank and credit statements, and invoices, for 5 years, as this will act as proof of your claimed costs.
Add up all of your allowable expenses for the entire tax year, and put the total on your Self Assessment return. Third-party accounting software can help automate this process and make it easier for you.
Make sure all records are accurate before submitting.
Submit your tax return online by January 31st, following the tax year. (For 2023-2024, the deadline is January 31st, 2025) and make sure to pay tax on time.

Take Control of Your Expenses with FreshBooks

When it comes to tracking allowable expenses, limited company owners, small business proprietors, and solo freelancers benefit from using accounting software like FreshBooks to manage travel expenses and keep receipts and business records organised.

FreshBooks has an expense tracking feature for your small business and is designed to work seamlessly with the self-assessment tax program on the HMRC website, making tax time a breeze.

Sign up for a trial today, try FreshBooks free , and see why it is the best online accounting software for small businesses in the UK.

FAQs About Allowable & Disallowable Expenses

The following are some of the most frequently asked questions posed by UK citizens who want to know more about tax deductions for their small businesses. Find out more about company expenses and taxes below.

Will HMRC ask for proof of expenses?

Not usually. You don’t have to send in receipts and proof when you submit your tax return, but make sure to keep all records for at least 5 years in case they have questions. FreshBooks can organise and store your receipts and invoices so you can easily access them when needed.

How much can you claim without receipts?

There is no limit to the amount you can claim without receipts in the UK. Your claims have to be accepted by a tax inspector, so make sure they are reasonable, or they will not be approved.

Are bad debts allowed or disallowed?

Bad debts that are unlikely to be paid back may be allowed as a tax deduction if it is written off as an expense and the HMRC considers them valid, according to the UK accounting standards.

More Useful Resources

Sole Trader Tax Guide
Working from Home Tax Relief
Self Employed Expenses
Marriage Allowance
Tax On Rental Income

Levon Kokhlikyan, ACCA

About the author

Levon Kokhlikyan is a Finance Manager and accountant with 18 years of experience in managerial accounting and consolidations. He has a proven track record of success in cost accounting, analyzing financial data, and implementing effective processes. He holds an ACCA accreditation and a bachelor’s degree in social science from Yerevan State University.

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Tax Rules on Travel Expenses

Posted 23rd February 2024 by by ilyas Patel

The rules surrounding tax relief on travel and incidental costs are quite specific for journeying between various work-related locations.

(Read Time: Approx. 3 minutes)

Topics Discussed:

Eligibility criteria for travel tax relief.
Exclusions pertaining to home-to-work travel, and the impact of temporary workplaces on travel expense claims.

Eligibility for Tax Relief

Owners and managers are often required to travel extensively for work, whether it’s between different workplaces, appointments, or other business activities.

Fortunately, these travel costs, along with incidental expenses, qualify for National Insurance Contributions (NICs) relief.

It’s important to note that the daily commute from home to a permanent workplace does not qualify for such relief, with specific exceptions.

Understanding the Exceptions

The general rule for tax relief for home-to-work travel holds two notable exceptions.

Firstly, if ‘work’ involves traveling to a temporary workplace, the costs incurred are allowable.

Secondly, if an individual’s home qualifies as a workplace based on their unique circumstances, then travel expenses may also qualify for tax relief.

This determination hinges on the specific duties and operational necessities of the owner or manager.

Incidental Costs of Travel

When travel qualifies for tax relief, so do the incidental costs associated with it.

These include subsistence, accommodation, and incidental overnight expenses.

It’s essential to keep accurate records of these expenses to substantiate claims for tax relief.

Special Considerations

Remember that owners or managers are taxed as “employees”.

This classification has significant implications for how travel expenses are treated for tax purposes.

For those who are self-employed, different rules apply. This includes the aforementioned rule on someone’s house being counted as a workplace.

This highlights the importance of understanding one’s employment status and its tax ramifications.

Temporary Workplaces

A specific regulation, Section 339A of the ITEPA 2003 , addresses workers employed through employment intermediaries.

This rule effectively changes the classification of what constitutes a temporary versus a permanent workplace, with implications for tax relief eligibility on travel expenses.

Under this rule, engagements considered separate employments could transform a temporary workplace into a permanent one, thus disqualifying travel expenses from tax relief.

This particularly affects Personal Service Companies (PSCs) within IR35 and Managed Service Companies (MSCs).

To Summarise

The rules surrounding travel expenses for owner-managers are layered with complexity.

From distinguishing between temporary and permanent workplaces to navigating the intricacies of IR35, understanding these regulations is pivotal.

For owners or managers seeking to optimise their tax positions, staying informed and seeking professional advice is key.

At Tax Expert, we’re here to guide you through the maze of tax relief opportunities, ensuring your business stays compliant while maximizing its financial health.

Sending an e-mail is simple too, just fill out this short form and we’ll get back to you!

Kind regards,

Ilyas Patel

Employee expenses

Most of the expenses you incur at work as an employee are paid for by your employer. Other work expenses – particularly travel and accommodation expenses – are reimbursed by your employer.

From April 2016, the system is being simplified, and HMRC will usually accept that business expenses which are reimbursed by your employer are not taxable benefits for you.

When an expense is reimbursed, HMRC has to be satisfied that the expense is allowable for tax purposes, otherwise the reimbursement from your employer is treated as additional taxable income.

Example: Alison is a sales manager. She is asked to attend a special sales event in the evening. She pays a babysitter to look after her children. The employer reimburses her for the cost of the babysitter. HMRC would not consider that the expense was allowable. It would not have been necessarily incurred by any holder of the office of sales manager. Tax would therefore be payable on the reimbursement.

(See http://www.hmrc.gov.uk/manuals/eimanual/EIM31648.htm )

reimbursed expenses, general rules and special cases

Different rules apply from 6 April 2016. The new system gives a tax exemption for expenses which would be tax-deductible under normal rules. You can find the details here:

https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim30210

Up to 5 April 2016, many employers reimbursed work related expenses at rates agreed with HM Revenue and Customs to produce no tax liability.

Where a specific agreement existed between HMRC and the employer this was called a dispensation. See http://www.hmrc.gov.uk/manuals/eimanual/EIM30051.htm .

Some reimbursed expenses are not taxable under special rules.

These include provisions of bicycles, parking, and nursery provision for example. Specific conditions apply so care is needed. You can find a list of the expenses on the HMRC website at http://www.hmrc.gov.uk/manuals/eimanual/EIM21241.htm . There a special rules on employer supported childcare – see http://www.hmrc.gov.uk/manuals/eimanual/EIM22012.htm .

Tax-free childcare

A new system of childcare funding, called ‘tax-free childcare, is being introduced. Existing employer supported childcare schemes will be closed to new entrants. The new scheme involves parents making payments into a designated account. The Government tops up the account to a maximum of £2,000 per child on an investment of £8,000 by the parents (giving the equivalent of 20% tax relief). Some more information can be found on the Gov.uk website .

You may need to take advice on your specific circumstances, or look at the examples on the HMRC website ( http://www.hmrc.gov.uk/manuals/eimanual/EIM31610.htm ).

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Non-executive Directors and travel expenses - HMRC changing the rules

28 june 2019.

It is very common for an organisation to meet the cost of travel expenses for non-executive directors (NEDs) to attend Board meetings and, where necessary, the cost of related accommodation and subsistence too.

Whilst the NED may say that he or she is home based, HMRC are unlikely to accept that the NED’s home is a workplace. Furthermore, if all (or almost all) of the time that a NED spends working for an organisation is spent at the location at which the board meetings take place, HMRC will regard this location as a ‘permanent workplace’. Journeys between a home and a permanent workplace are ordinary commuting and the travel expenses attributable to such journeys (and any related accommodation and subsistence) are generally taxable. HMRC Booklet 490 includes an example under section 3.12.

What is changing?

Historically many public sector organisations have settled the tax due on NEDs' taxable travel and subsistence expenses by including it on their PAYE Settlement Agreement (PSA). PSAs have the advantage of being convenient but the disadvantage of being expensive; because the tax and national insurance contributions (NIC) payable by the public sector organisation under the PSA is calculated on a grossed-up basis (the effective tax rate for a 40 per cent taxpayer is touching 90 per cent).

This treatment has, however, been withdrawn by HMRC from 6 April 2019. From that date the only items that HMRC is permitted to include in the PSA for a public sector organisation must be either:

minor (in terms of the value of the item);
irregular (in terms of the provision of the benefit or expense); or
impracticable (to apply PAYE or apportion between the employees receiving the benefit).

The Department of Business, Energy & Industrial Strategy (BEIS) wrote to the bodies it oversees on 30 May 2019 including this instruction:

'Any payments made to non-executives and other office holders will now have to be paid through payroll, with tax and National Insurance deducted at source.

'For cases where BEIS is responsible for paying fees and expenses, the default position is that the individual NED/office holder will pay the tax and National Insurance on any taxable expenses.

'The policy sponsor directorate may choose to cover these costs but this is a decision for them and will need to be met out their directorate budget.

'For cases where BEIS is not responsible for paying fees and expenses, individual organisations need to ensure that they are tax-compliant.'

What does this mean?

Each case of NED expenses should be closely reviewed to see if tax relief is available. If tax relief is not available, then:

where the NED is reimbursed for these expenses the payment is treated as covering a pecuniary liability of the NED and is thus liable to tax and Class 1 NIC (employee’s and employer’s) via the payroll. When the expenses are reimbursed they should be placed through payroll within 14 days of the reimbursement or in the next payroll run to avoid the potential of penalties for incorrect RTI returns. The question then is does the payer gross up the payment so the NED receives the net they expended or not! If they don’t then the NED will be out of pocket;
if the organisation arranges for the expenses directly, then these are reportable on form P11D and chargeable to Class 1A NIC. If the organisation places these amounts on the P11D then the NED will suffer the tax and the payer the Class 1A NIC. Again, the NED will be out of pocket if historically they did not pay the tax; and
if the organisation is not in the public sector it may still be possible to include the whole cost in their PSA if it meets the criteria outlined above. For payroll items the PSA should be agreed with HMRC before the reimbursement is made.

As mentioned in our articles ‘ Non-executive directors’ fees – how to avoid mistakes ' and ‘ Non-resident directors of UK companies and the tax implications ’, it is also worth reiterating that fees for NED roles in the public and private sectors should generally be subject to tax and NIC through the payroll as NEDs are treated as officeholders (ie employees) for PAYE purposes.

What should organisations be doing now?

We would recommend all organisations check the position regarding NED expenses to see if the correct tax treatment has been applied. If historically the organisation has dealt with these expenses via a PSA, consideration should be given to whether this treatment can continue from 6 April 2019.

For those who have had their PSA removed, or don’t have one in place, then they should urgently make sure that any reimbursed expenses have been placed through payroll and the correct tax and NIC treatment applied.

We understand that those covered by the Department of Business (BEIS) instructions were asked to confirm they had actioned the change to their PSAs by 14 June 2019.

For those not covered by the BEIS instructions it is likely we will see more activity from HMRC in this area in the coming months.

If you have any further questions regarding to payments to non-executive directors, please contact Susan Ball or Lee Knight.

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Business tax

Special tax rules on foreign travel (490: Chapter 7)

Find out about the special tax rules that give extra tax relief for travel by some employees who work abroad, or come from abroad to work in the UK.

Special tax rules on foreign travel

There are special tax rules which give extra tax relief for travel by some employees who work abroad, or come from abroad to work in the UK.

The full cost of foreign travel may qualify (in the same way as the full cost of domestic travel) for tax relief under the general travel expenses rules.

Employees may instead be entitled to tax relief under the special rules which apply only to foreign travel but generally it will be sensible to consider first whether tax relief is available under the general travel expenses rules.

There are special rules for working out the tax relief on motoring expenses paid to employees who use their own vehicles for business travel - see paragraph 9.12 .

This chapter contains the terms resident and domiciled.

In general terms an employee is:

resident in the UK if they are physically present here on a regular or frequent basis
domiciled in the UK if the UK is their permanent home

There are different special rules for employees:

resident in the UK and who carry out all the duties of their employment abroad (see paragraphs 7.4 and 7.5 )
resident in the UK and who carry out part of the duties of their employment abroad (see paragraphs 7.6 and 7.7 )
not domiciled in the UK who work in the UK (see paragraphs 7.8 and 7.9 )

People carrying out all their duties abroad

An employee who is resident in the UK and who carries out all their duties abroad is entitled to tax relief:

when they start the job abroad - for the full cost of travelling from anywhere in the UK to the place abroad where they’ll be working
when they finish the job abroad - for the full cost of travelling back to anywhere in the UK
while they’re working abroad - for the cost of accommodation and subsistence but only to the extent that this cost is included in the employee’s earnings, for example, where the cost is borne or reimbursed by, or on behalf of, their employer

If the employee has 2 jobs - for the full cost of travelling from where they do one job to where they do the other. But an employee is entitled to tax relief for these expenses only if:

they’re living in the UK
their employer is resident in the UK

Karen is resident and domiciled in the UK. She travels from her home in Bristol to start a permanent job in Munich.

Karen is not entitled to tax relief for the full cost of her journey to Munich under the general expenses rules because this journey is ordinary commuting. But she is entitled to tax relief for the cost of the journey under the special rules on foreign travel. Her employer provides her with free board and lodging in Munich.

This gives rise to a taxable benefit and Karen is not entitled to tax relief under the general expenses rules to set against that benefit. But she is entitled to tax relief set against the benefit under the special rules on foreign travel.

An employee who is resident in the UK and carries out all their duties abroad is also entitled to tax relief if the duties:

can only be carried out abroad - for the full cost of journeys to and from anywhere in the UK made during the time they work abroad
keep the employee abroad for 60 days or more - for the full cost of a spouse or civil partner and children travelling from anywhere in the UK to visit or accompany the employee to the place where they are working and their return journey back to the UK

The employee can only get tax relief for up to 2 outward journeys and 2 return journeys in each tax year for each member of their family.

But the employee can get tax relief for these expenses only if the cost is included in the employee’s earnings, for example, where the cost is borne or reimbursed by, or on behalf of, their employer.

Colin is resident and domiciled in the UK. He gets a job in Japan. While he is working in Japan he makes 5 visits to the UK. He buys a return ticket each time. His employer reimburses the cost of the first 4 visits but does not reimburse the cost of the fifth visit.

Colin is entitled to tax relief under the special rules for the full cost of the return journeys for the first 4 visits.

He is not entitled to tax relief for the fifth visit because his employer did not reimburse the cost of his ticket.

People carrying out part of their duties abroad

An employee who is resident in the UK and carries out part of their duties abroad is entitled to tax relief if the duties:

can only be carried out abroad - for the full cost of all journeys from anywhere in the UK to the place where the employee is working and return journeys to the UK
keep the employee abroad for 60 days or more - for the full cost of a spouse or civil partner and children travelling from anywhere in the UK to visit or accompany the employee to the place where they are working, and their return journey back to the UK

But an employee can get tax relief for these expenses only if these costs are included in the employee’s earnings, for example, where the costs are borne or reimbursed by, or on behalf of, their employer.

Pam has to go to Paris to carry out some of the duties of her job. She goes for 3 weeks in January and for a further 15 weeks from the beginning of March. Pam’s daughter goes to Paris to visit her on 4 separate occasions: one in January, two in March and one in May.

Pam’s employer reimburses the cost of all these journeys. The reimbursed cost gives rise to a taxable benefit.

Pam is entitled to tax relief under the special rules for the full cost of her daughter’s 2 journeys in March and the one journey in May. She is entitled to tax relief for the full cost of all 3 journeys because 2 fall in one tax year and the third falls in the next tax year.

Pam is not entitled to tax relief for the cost of the journey in January because she was not away on business for 60 continuous days.

Stephen is resident in the UK. He is employed by a construction company on many different sites in the course of a year both in the UK and abroad. He does not have a permanent workplace.

He goes to work on a site in Germany for 3 months. While he is in Germany he stays in lodgings.

Under the special rules Stephen would be entitled to tax relief for the full cost of his journey to Germany but not for the cost of his lodgings.

Under the general expenses rules Stephen would be entitled to tax relief for the full cost of his journey and his lodgings while he is away because his lodgings are treated as part of the cost of his travel, see paragraph 5.4 of The amount of tax relief (Chapter 5) .

Stephen will, therefore, be entitled to more tax relief under the general expenses rules than under the special rules on foreign travel.

An employee who is resident in the UK and has 2 jobs where part of the duties of at least one of them is carried out abroad, is entitled to tax relief for the full cost of travelling between them as long as one end of the journey is outside the UK.

But the employee is entitled to tax relief for this expense only if:

People from abroad coming to work in the UK

An employee is entitled to tax relief under these special rules only if they meet certain conditions. To decide whether an employee is entitled to tax relief under the special rules it’s necessary to find out on what date they came to the UK to work, work out which tax year that date falls into, and ask was the employee:

resident in the UK in either of the 2 tax years which ended before the tax year in which that date falls?
in the UK, for any reason, at any time in the 2 years ending on the day immediately before that date?

If the answer to either of these questions is ‘no’, then the employee is entitled to tax relief under the special rules.

If the answer to both of these questions is ‘yes’, then the employee is not entitled to tax relief under the special rules.

However, they’re still entitled to tax relief for the full cost of business journeys under the general expenses rules.

Patsy is domiciled in Australia. She came to the UK on 4 February 2019 to work in Lincoln. She had been to the UK in 2018 for a holiday but has never been resident in the UK.

Patsy arrived to work in the UK in the tax year 2018 to 2019.

She had not been resident in the UK in either 2016 to 2017 or 2017 to 2018.

This means she is entitled to tax relief under the special rules.

An employee who:

is not domiciled in the UK but who works in the UK
meets the necessary conditions (see paragraph 7.8 )
for the full cost of journeys from the place where the employee usually lives to the place where they’re working in the UK and back home after carrying out those duties - the requirement that the journey must be to a place in the UK to perform duties of the employment can be taken to mean travel to the place where the employee lives in the UK whilst performing the duties of the employment - there is no limit to the number of journeys for which an employee can get tax relief
if the employee’s work in the UK keeps them in this country for 60 days or more - for the cost of a spouse or civil partner and children travelling from their home to visit or accompany the employee to the place where they’re working in the UK, and their return journey

The employee can only get tax relief for up to 2 outbound journeys and 2 return journeys in each tax year for each member of their family.

But the employee is entitled to tax relief for these expenses only if the costs are included in the employee’s earnings, for example, where the costs are borne or reimbursed by, or on behalf of, their employer.

Ben is domiciled in Canada but works in the UK and meets the conditions in paragraph 7.8 . He came to work in the UK in January 2014. In December 2016 he travelled back to Canada to visit his parents.

His employer paid for his travel costs from his home to the airport and his flight ticket. This gave rise to a taxable benefit, but Ben was entitled to tax relief under the special rules to set against that benefit.

In March 2019 Ben travelled back to Canada again. Once again his employer paid for his ticket and this gave rise to a taxable benefit.

But this time Ben was not entitled to tax relief under the special rules on foreign travel because his trip to Canada took place more than 5 years after the date on which he arrived in the UK.

Extra costs of foreign travel

Where an employee is entitled to tax relief under the special rules on foreign travel for the full cost of a journey, they’re also entitled to tax relief for the cost of any:

inoculations needed for that journey
visas needed for that journey

An employee who goes abroad to work can also get tax relief for medical treatment provided abroad, or insurance against the cost of medical treatment provided abroad, where these expenses are borne or reimbursed by, or on behalf of, their employer.

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Money latest: Morrisons shoppers are going to notice two changes in stores

Morrisons has launched two major changes for shoppers – with stores offering travel money and trolleys now featuring advertisements. Read this and all the latest consumer and personal finance news below - and leave your thoughts in the box.

Thursday 25 April 2024 19:51, UK

Halifax hikes mortgage rates - as entire market moves upwards
Renters' Reform Bill signed off - but with indefinite delay to no-fault evictions ban
Morrisons rolls out bureau de change and trolley adverts

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Ask a question or make a comment

Halifax has become the latest major lender to up mortgage rates.

They are putting up a range of deals by 0.2%.

BM Solutions also announced increases today.

It follows similar moves by TSB, NatWest, Virgin, Barclays, Accord, Leeds Building Society, HSBC and Coventry last week.

Lenders are responding to swap rates - which dictate how much it costs to lend money - rising on the back of higher than expected US inflation data, and concerns this could delay interest rate cuts there.

US trends often materialise elsewhere - though many economists are still expecting a base rate cut from 5.25% to 5% in the UK in June.

This is what average mortgage rates look like as of today...

Justin Moy, managing director of EHF Mortgages, told Newspage: "Yet more bad news for mortgage borrowers, as two of the biggest lenders announce increases to their fixed-rate products.

"As mortgage rates creep up and past 5% even for those with the largest deposits, we seem to be lacking a clear strategy of the government or the Bank of England on how rates will eventually fall.

"Even 2% inflation may not be enough to reverse the recent trends in rates."

Morrisons has launched two major changes for shoppers – with stores now offering travel money and trolleys featuring advertisements.

Announcing their bureau de change service, Morrisons said customers could exchange currencies in select stores or could place their money orders online at Morrisonstravelmoney.com.

Using the online service means customers can either click and collect their cash in certain Morrisons stores or at any of Eurochange's 240 branches. Alternatively, they can go for home delivery.

Services director at Morrisons, Jamie Winter, said the service "will provide our customers with easy access to a wide range of currencies at competitive exchange rates".

So far, stores in the following areas have travel money kiosks:

Basingstoke

In other news, the supermarket chain rolled out a new trolley advertising across 300 stores in a partnership with Retail Media Group.

A sweetener used in drinks, sauces, savoury and sweet foods and chewing gum can cause serious damage to people's health, according to a new study.

Neotame, a "relatively new" sweetener, could damage the intestine by causing damage to healthy bacteria in the gut, according to the study, leading it to become diseased and attack the gut wall.

The study by Anglia Ruskin University (ARU), published in the journal Frontiers in Nutrition, found the negative effect of neotame "has the potential to influence a range of gut functions resulting in poor gut health", potentially impacting metabolic and inflammatory diseases, neuropathic pain, and neurological conditions.

The illnesses this could lead to include irritable bowel disease or insulin resistance.

Read the full story here ...

As we reported yesterday, a pilot programme is coming into force in Venice today that means visitors have to pay a €5 (£4.28) charge to enter the city.

Authorities say the pilot programme is designed to discourage tourists and thin the crowds that throng the canals during peak holiday season, making the city more liveable for residents.

Pictures have been emerging this morning of people queueing to register for a QR code that will allow them to enter after they have paid the charge - and officials carrying out checks on people inside the city.

People found to be contravening the rules can be fined up to €300 (£257).

As detailed in our story , the move has been met with anger among some in the city.

Venice is the first city in the world to introduce a payment system for tourists - but comments from its most senior tourist official suggested it may become a more common practice for major tourist hotspots in Europe.

Simone Venturini revealed the pilot programme was being closely watched by other places suffering from mass tourism - including other Italian art cities and hugely popular weekend-break destinations Barcelona and Amsterdam.

More than 160,000 people switched to Nationwide from other providers at the end of 2023, when the building society was offering a huge cash switching incentive.

According to figures from the Current Account Switch Service (CASS), Nationwide had a net gain of 163,363 account switchers between October and December, after leavers were taken into account.

It was the highest quarterly gain since the same period in 2022, when 111,941 switched to Nationwide.

The building society launched a £200 switching bonus for new joiners in September last year - the biggest giveaway on offer at the time. It withdrew the offer just before Christmas.

The latest CASS figures, which show Nationwide had 196,260 total gains before accounting for leavers, suggesting it could have spent up to £39m on nabbing customers from other providers in the last three months of the year.

Barclays and Lloyds Bank saw more modest net gains of 12,823 and 5,800 respectively, while the rest of the UK's big banks reported net losses.

NatWest and Halifax fared worst, losing over 40,000 more switchers each than they gained.

This week saw the last remaining switching offer on the market withdrawn.

Sainsbury's is having technical issues again - with shoppers taking to social media to say their deliveries have been delayed or cancelled.

The supermarket has been replying to customers saying: "I'm really sorry about the tech issues this morning.

"We're aware of the situation and are working to sort it as quickly as possible. In the meantime, we'd advise you place a new order for a future date."

Customer Andrew Savage wrote: "Order has not been delivered and no confirmation email this morning."

Another, John B Sheffield, said: "So angry! Just got through to your customer line after 40 min WAIT.

"Tells me NO DELIVERIES TODAY! tech problem? I've NO FOOD IN! ANGRY!"

In a statement to Sky News, a Sainsbury's spokesperson says: "A small technical issue affected some groceries online orders this morning.

"We have contacted these customers directly to apologise for the inconvenience."

In another update at 10am, the supermarket said that the issue has been resolved.

Responding to customers on X, Sainsbury's also offered those affected e-vouchers and details on how to rebook their orders.

It comes a month after the supermarket had to cancel almost all deliveries on a Saturday in mid-March due to another technical issue.

By Daniel Binns, business reporter

A potential $38.8bn (£31bn) takeover of UK-based mining company Anglo American has sent its shares soaring - and helped the FTSE 100 hit yet another record high this morning.

The attempted mega-merger, by larger Australian rival BHP, is currently being reviewed by Anglo American's board.

The deal, if it goes through, would create the world's biggest copper mining company - and comes as the price of the metal continues to climb amid soaring demand.

Anglo American's shares have surged as high as 13% this morning as news of the negotiations emerged.

The announcement also helped spur the FTSE 100 to a new intraday (during the day) high of 8,098 points.

The index, of the London Stock Exchange's 100 most valuable companies, has hit a string of records this week, including an all-time closing high of 8,044 points on Tuesday.

The score is based on a calculation of the total value of the shares on the index.

Also moving the markets are a string of company results which were published earlier on Thursday.

Among those issuing updates to investors was drugsmaker AstraZeneca. Its stock is up more than 5% after the firm reported quarterly profit and revenue above market estimates.

Unilever is also up 5% following similar better-than-expected quarterly figures.

Another good performer is Barclays - despite reporting a 12% fall in profits for the first three months of 2024. Its shares are up more than 4%.

That's because its quarterly figures are slightly better than expected, and the bank has said it expects its fortunes to improve later this year.

Meanwhile, as tensions in the Middle East continue, the price of a barrel of Brent crude oil continues to hover at a price of around $88 (£70).

This morning £1 buys $1.25 US or €1.16, similar to yesterday.

Every week we get experts to answer your Money Problems - usually on a Monday, but today we have a short, bonus addition in light of multiple lenders raising mortgage rates this week on fears an interest rate cut could be delayed to a little later this year (note: many economists still think it will come in summer).

A few readers have got in touch with questions similar to this one...

My remortgage is due to complete on 1 May. I already have an offer but with rates going up, is there any way at all my offer rate could increase? Saz681

We asked David Hollingworth, director at L&C Mortgages, to answer this one...

It's great news that you are already set up with a mortgage offer, Saz - ready to make a smooth switch to a new deal and/or lender, once the current one ends.

It does take time to set up a new mortgage so shopping around the market a good few months ahead will help you put everything in place and avoid slipping onto a high variable rate.

Fixed rates have been nudging up slightly but you have already got a formal offer in place so shouldn't worry.

Applying for a mortgage will generally secure that rate and the lender will then carry out any further checks to issue the mortgage offer.

The offer will be valid for a specified period, often for up to six months. Rates are always shifting for new customers but you can rest easy that your rate should be safe and sound for your switch in May.

This feature is not intended as financial advice - the aim is to give an overview of the things you should think about. Submit your dilemma or consumer dispute, leaving your name and where in the country you are, by emailing [email protected] with the subject line "Money blog". Alternatively, WhatsApp us here .

By Ollie Cooper , Money team

Interest in a phenomenon known as "dark tourism" has been steadily rising in recent years - but what is it?

To find out, we've spoken with tourism academic Dr Hayley Stainton and renowned dark tourist and author Dr Peter Hohenhaus, who runs a dark tourism website .

What is it?

In general, dark tourism involves travelling to sites connected to death or disaster.

"Dark tourism has been around for as long as we have been travelling to places associated with death," Dr Stainton says.

However, the term wasn't officially coined until 1996 by John Lennon, a professor of tourism at Glasgow Caledonian University, in Scotland.

"Not everyone is familiar with the term," says Dr Stainton, "[but] many people have been a dark tourist at some time or another, whether intentional or not."

Some examples of the most famous sites

Auschwitz concentration camp, Poland
9/11 Memorial and Museum in New York, US
Chernobyl, Ukraine
Hiroshima and Nagasaki, Japan
Choeung Ek "killing fields" and the Tuol Sleng genocide museum at the former S-21 prison in Phnom Penh, Cambodia

Areas with a degree of infamy, like Alcatraz, are extremely popular spots that also fall under the "dark tourism" umbrella.

How popular is it?

Dr Hohenhaus and Dr Stainton say they have noticed a rise in its popularity.

"Tourists are looking for more unique and unusual experiences," Dr Stainton says.

"This has seen a move away from the more traditional 'sun, sea and sand' type holidays to a variety of different tourism forms, which includes dark tourism."

Dr Hohenhaus adds: "Maybe people want to connect to more recent and hence more personally relevant history - that is definitely the case with myself."

He goes on: "I think I've learned more about the world through dark tourism than through all of my formal education or my previous academic career."

Is it ethical?

This is the big question associated with dark tourism.

Dr Stainton says that while problems do arise, the stigma around the practice is often misguided.

"People don't visit sites like the killing fields in Cambodia or the site of Chernobyl for 'fun' - they visit for the educational experience, as dark tourism is often also a form of educational tourism," she says.

Problems arise when tourists are not respectful to those who may have been impacted.

"For instance, taking inappropriate photos or laughing and joking when others may be in a state of mourning."

Notorious examples include people taking selfies outside Grenfell Tower and at Auschwitz.

"It is therefore imperative that dark tourists are considerate of those around them and respectful at all times," Dr Stainton says.

"As long as you are not just after a cheap sensationalist thrill - take dark tourism seriously and do it right, and it can be an immensely enriching thing to engage in." Dr Hohenhaus

Where could you go?

These are Dr Hohenhaus' recommendations:

Ijen crater in Indonesia - where at night you can see the fabled blue flames of the sulphur mines next to the volcano crater lake;
The Polygon, the former Semipalatinsk nuclear weapons test site of the USSR, now in Kazakhstan;
The Goli Otok former prison island off the coast of Croatia;
The Murambi memorial to the Rwandan genocide - which Dr Hohenhaus says is "certainly the very darkest place I have ever been";
Majdanek concentration camp memorial near Lublin, eastern Poland.

What do you think of dark tourism? Is it misunderstood, educational or abhorrent? Let us know in the comments section...

John Lewis will be sharing its job interview questions online in an attempt to find the "best talent".

The retail chain hopes that allowing candidates to view questions before an interview will allow prospective employees to "really demonstrate what they can do" and prepare, the Financial Times reports.

John Lewis talent acquisition lead Lorna Bullett told Sky News that interviews can feel daunting and "nerves can seriously impact performance".

She added the company want "the right people" from a variety of backgrounds and with "the best talent" to join.

"It makes absolute business sense to find ways of helping candidates to really demonstrate what they can do," she said.

Ms Bullett added that the process will be "no less rigorous".

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COMMENTS

Expenses and benefits: travel and subsistence: Overview
As an employer paying your employees' travel costs, you have certain tax, National Insurance and reporting obligations. This includes costs for: providing travel. reimbursing travel ...
Tax rules on other types of travel and related expenses (490 ...
8.3. Employees who stay away overnight while travelling on business, or attending work-related training of the kind described in paragraphs 8.7 and 8.8, are entitled to tax relief for personal ...
HMRC Travel Expenses
The 45p travel expense is the HMRC mileage rate for business travel using a personal vehicle. This applies to the first 10,000 miles of business travel; anything beyond that is 25p. This per diem can be claimed from the HMRC as a business travel expense when you file your taxes.
Travel and Subsistence Expenses HMRC
HMRC has set the standard rates for subsistence payments known as "scale rates for subsistence expenses". The employees, If claim their expenses as per these scale rates, their payments will be free from tax and National Insurance contributions. Breakfast Rate. you can claim a tax-free breakfast price of up to £5.
Travel Expenses in the UK: An Overview
Travel Expenses in the UK: An Overview. Anyone undertaking a business trip for the employer usually has expenses for this trip - be it for meals, accommodation, or transport. Under certain conditions, these travel expenses are tax-deductible. Our guide reveals which specific conditions apply, which travel expenses can be claimed, and which ...
Tax-deductible expenses
Find out what work expenses you can claim tax-free, including if you work from home, and for mileage allowance, and how your tax code is used to claim them. ... Reimbursement for business travel; Expenses on business trips; Work uniform expenses; Membership fees expenses; ... UK income tax rates 2023-24 and 2024-25; Income tax calculator 2024 ...
Guide to HMRC Subsistence Allowance & Expenses
the official HMRC meal allowance rates for UK business travel. are: £5 for travel of 5 hours or more (£10 supplement if travel is ongoing at 8pm) £10 for travel of 10 hours or more (£10 supplement if travel is ongoing at 8pm) £25 for travel of 15 hours or more (and ongoing at 8pm) Many companies will have higher per diem rates for C-level ...
The rules on travel and subsistence: a long and winding road
Travel and subsistence expenses would normally be taxable here if the costs of ordinary commuting were paid for or reimbursed by their employer, or if travel facilities were provided. But for some staff, the situation is more complicated. For example, if the journey to a temporary location is broadly the same as an employee's ordinary commute ...
Guide to HMRC Travel Expenses
If you are a UK resident who travels for work, your business-travel expenses likely qualify for either reimbursement or tax relief. HMRC travel expenses guidelines are a somewhat complicated matter, but in this article, we will give you an overview of the things you need to know when you want to claim back money spent on travel that is necessary for work.
Employee Travel Expenses in the UK: An Overview
Travel expenses arise from work-related activities away from the place of residence and the primary place of work. The primary place of work is considered to be the place where the employee works on a regular basis. If companies bear the costs for such business trips by employees, they can be deducted from tax under certain circumstances.
When travel qualifies for tax relief (490: Chapter 2)
In most cases, tax relief is available for the full cost of business travelling expenses, except where motoring expenses are paid to employees who use their own vehicles for business travel, in ...
Travel expenses
Travel expenses have specific tests which must be satisfied in order for an employee to gain a deduction. These rules are different from the general rule for deductibility of expenses in that they do not need to be incurred 'wholly and exclusively'. ... Prior to this, Phil was responsible for Molson Coors UK tax affairs covering all major ...
Expenses & Allowances for Foreign Business Travel
If you travel regularly, you're probably used to juggling exchange rates, and they can make claiming expenses tricky. A €30 taxi ride could cost £20 when you take it, £21 when it comes out of your bank account, and £22 when you come to claim the expense in your accounting software. If in doubt, always use the amount that left your bank ...
Allowable Expenses & Disallowable Expenses in the UK
Travel Expenses. One of the top allowable expenses sole traders take advantage of is travel, including hotel rooms or other accommodation costs, meals on overnight business trips, and train, bus, air, and taxi fares when travelling for work. ... Along with allowable tax expenses in the UK, there are also disallowable expenses, meaning costs ...
Tax Rules on Travel Expenses
This rule effectively changes the classification of what constitutes a temporary versus a permanent workplace, with implications for tax relief eligibility on travel expenses. Under this rule, engagements considered separate employments could transform a temporary workplace into a permanent one, thus disqualifying travel expenses from tax relief.
Expenses which are reimbursed
Employee expenses. Most of the expenses you incur at work as an employee are paid for by your employer. Other work expenses - particularly travel and accommodation expenses - are reimbursed by your employer. From April 2016, the system is being simplified, and HMRC will usually accept that business expenses which are reimbursed by your ...
Employment expenses: travel
Note: From 6 January 2024, the main rate of class 1 National Insurance contributions (NIC) deducted from employees' wages reduced from 12% to 10%. From 6 April 2024, that rate is reduced further to 8%, the main rate of self-employed class 4 NIC is reduced from 9% to 6% and class 2 NIC is no longer due. Those with profits below £6,725 a year ...
Rates and allowances: travel
Details. The attached document is classified by HMRC as guidance and contains information about rates and allowances for travel, including mileage and fuel allowances. Published 13 June 2013. Last ...
Non-executive Directors & travel expenses
28 june 2019. It is very common for an organisation to meet the cost of travel expenses for non-executive directors (NEDs) to attend Board meetings and, where necessary, the cost of related accommodation and subsistence too. Whilst the NED may say that he or she is home based, HMRC are unlikely to accept that the NED's home is a workplace.
5 myths about self-assessment expenses busted
5 myths about expenses busted. Below, we bust some of the most common myths about claiming business expenses: 1. Work-from-home expenses are no longer accepted. Millions of workers were able to claim tax relief on expenses they incurred from working from home during the Covid-19 pandemic. But the rules have changed since then, with self ...
Special tax rules on foreign travel (490: Chapter 7)
7.1. There are special tax rules which give extra tax relief for travel by some employees who work abroad, or come from abroad to work in the UK. The full cost of foreign travel may qualify (in ...
PDF HM Treasury Group travel and expenses policy
2 Travel expenses. 2.1 Staff must make maximum use of travel facilities that offer best value for money e.g. timed trains cheap day returns, booking single tickets where these are more cost effective and/or season tickets Full guidance on Hogg Robinson travel can be found at the HRG Portal.
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