It’s a common misconception that business owners can put all travel through the business and it will be allowable for tax purposes.
Travel expenses need to be ordinary and necessary expenses for travel to benefit the company. This would be items such as costs for transport, meals whilst away from the place of work and mileage expenses on business travel. Other expenses may also be parking fees, car/van rental and tolls and congestion charges on work business.
As long as these are for the business, the business will get tax relief on these off their taxes.
The expenses need to be part of the employees work duties as well journeys related to an employees attendance at a temporary workplace or outside of the normal commute.
Therefore regular commuting costs to the workplace are not allowable for this purpose as being tax deductible. If an employee is going to a sales meeting or a conference, this would be a work related trip and therefore be allowable.
The most common travel paid is mileage for use of personal car. This is 45p for up to 10000 miles and then 25p thereafter each year.
LEGISLATION ON THIS FROM HMRC
Expenses and benefits: travel and subsistence: Overview – GOV.UK (www.gov.uk)
HOW CAN WE HELP
We can help with regards to doing the accounts or personal tax returns in this case to ensure only the work related travel expenses are put through correctly in the accounts and tax returns.