Taking your business abroad can be exciting and potentially tax-deductible. Win – win right? But when your business trip includes a little sightseeing, fine dining, or an extended stay, things can get murky.
So how much of your business trip abroad can you actually claim?
Let’s break it down clearly so you can avoid trouble with HMRC – and still claim back as much as possible.
1. HMRC’s Golden Rule: Is It “Wholly and Exclusively” for Business?
HMRC is very clear: expenses must be “wholly and exclusively” for business purposes to be allowable.
If a trip abroad is primarily for business, you can claim many of the associated costs. However, if the trip is mainly personal and you just squeeze in a few business activities, your claim will be limited.
You can claim the business-related portion—but not the personal bits.
2. Allowable Travel Costs
If the primary purpose of your trip is business, you may be able to claim:
- Flights or travel to the destination – This includes return flights, trains, taxis, or mileage to the airport—if the trip is mainly for business.
- Accommodation
Hotel stays during the business portion of your trip are allowable. Extra nights for holiday purposes are not.
- Meals
You can claim reasonable meal costs while travelling for business, but
lavish dinners or meals during personal time won’t be covered.
- Local transport
Including taxis, public transport, or car hire – again, only for business-related use.
- Phone, internet, printing
If you incur extra mobile charges, roaming fees, or use hotel Wi-Fi for work purposes, you can claim these.
3. What If the Trip Is Mixed: Business + Leisure?
This is where most people slip up.
Let’s say you’re attending a three-day conference in Rome, then taking a week off to visit the Amalfi Coast…
- Transport: If the trip’s primary purpose was business, the whole airfare (or rail fare etc) may still be deductible—even if you add some personal time.
- Accommodation: Only the nights related to the business portion are deductible.
- Meals: Again, only during business-related days and events.
- Leisure activities (museum tickets, wine tours, personal sightseeing): Not deductible.
4. Can I bring my spouse and children with me?
If your spouse and/or children tag along, their expenses generally aren’t deductible—unless they’re also employees or have a genuine business reason to be there.
If you share a hotel room with your spouse, you can still usually claim what the room would’ve cost for you alone.
5. What About Subsistence?
You can claim actual, reasonable expenses for meals and subsistence while travelling for business.
Make sure to keep itemised receipts – HMRC will want actual figures if asked.
- Don’t Forget To;
- Keep records: HMRC may ask for evidence, including receipts, meeting agendas, emails, or invitations. The clearer your paper trail, the stronger your claim.
- Be honest: Overclaiming or including personal expenses can land you in trouble. If you’re not sure whether something qualifies, it’s better to leave it out or speak to a qualified accountant.
Final Thoughts
A business trip abroad can offer great opportunities and an enjoyable perk of running a business —just don’t let the tax deductions become an afterthought. With smart planning, good documentation, and honest reporting, you can legitimately claim a significant portion of your expenses.
If in doubt, always check with your accountant. We’re here to help!
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