A beginner’s guide to self-employed travel expenses

Businesses are entitled to claim tax relief on certain travel expenses, but all too often don’t because they are unaware of what constitutes a legitimate claim.

What costs are claimable

Provided that the costs are incurred exclusively for business purposes, you should be able to claim for vehicle insurance, tax, breakdown cover, repairs, servicing, fuel costs and parking fees. Further, you should be able to claim the cost of hiring vehicles if yours is off the road, public transport costs including hotel accommodation and meals when you are staying away from home overnight for business reasons.

What costs aren’t claimable

You cannot claim for any personal travel costs, including commuting between home and a permanent workplace. You also cannot claim for fines or penalty charges, even if they are incurred in the course of your business duties and you cannot claim for non-business travel expenses.

If you are unsure as to which of your expenses are claimable, Tewkesbury accountants such as https://www.randall-payne.co.uk/services/accountancy/tewkesbury-accountants can advise on your individual circumstances.

Claiming business mileage

There are two different ways in which you can claim mileage. Firstly, by submitting your actual running costs, or secondly, by using HMRC’s simplified expenses method which applies a flat-rate to your business mileage.

Claiming business expenses is a major benefit of being self-employed, but you must ensure that all claims are legitimate and fully compliant with HMRC requirements. If you have any doubts about your claim, always check with your accountant before you submit a claim to ensure that you are only claiming for appropriate expenses.