Help Centre

Travel & subsistence

When claiming travel as an expense you should consider that HMRC provides allowances only for employees who move between destinations during work, and not for those journeying to and from work.

If you have previously worked under an umbrella company you may be familiar with the £5 allowance. This unreceipted, fixed allowance, does not apply when you’re working through a limited company. Instead, you must claim for your actual costs.

It is regarded as an allowable expense if you are traveling to a temporary workplace. Essentially, this is a place you are traveling to perform a transient task or for a limited duration.

It ceases to be a temporary workplace if it is known it will be, or develops to be a place of continuous work for over 24 months. Understand that it stops qualifying as an expense from the moment you know the workplace will exceed 24 months (as is a common pitfall), not when the duration of work reaches 24 months. Meals, tolls, congestion charges and parking fees can all be claimed for under travel and subsistence. The second part of the test for a place of work to be classed as temporary is that there must be a reasonable expectation of further work, at a different location, but still as an employee of your own limited company.

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