Travel and subsistence – some basics

Paula Veysey Smith • 23 April 2018

Travel and subsistence – some basics

Our third Thorny Issue article will look at travel and subsistence. These rules do vary depending on whether you are self-employed, employed or a company director. However, there is one thing in common, any expenses must be wholly and exclusively business related. This applies all the way through. Combined business and personal travel or subsistence expenses are not allowed. You must always deduct any non-business element.

For the purposes of this article we will focus on the self-employed and company directors.

You can claim for travel and subsistence when:

Travel for work outside the normal commute
Food and drink during the day on journeys outside the normal pattern of work
Overnight accommodation on work journeys
Dinner and breakfast when staying overnight

However, it cannot be claimed when:

Normal commute to and from base of work
Food and drink on journeys as part of the normal pattern of work
Parking fines, speeding tickets and other penalties
Travel costs not exclusively for work

Where is my usual place of work?

The first thing you need to think about is your base of work, so that you can work out what is your ordinary commute. If you rent working space anywhere then it is generally straightforward as that will be your base of work. If you mainly work from home then that will usually be your base. If you don’t rent space and are generally out and about e.g. a plumber, then your base might also be home. This is particularly true if you are claiming use of home as an office as part of your expenses.

You can’t include any expenses for your journey between your home and base of work as this is considered to be part of your ordinary commute. Other travel outside the ordinary commute is generally allowed provided it is “wholly and exclusively” for work purposes. Using a private car the best way to reclaim your cost of travel is by pence per mile and you can also claim other travel expenses such as airfares, rail, taxis, bus, congestion charge, toll charges. If you drive a van, eg, a plumber again, the whole cost of your vehicle can be reclaimed as a company vehicle.

You can’t claim for penalties and fines, so no speeding or dodgy parking. You also can’t claim for Oyster card top-ups if you also use the card for personal travel. Although it sounds picky why not have two cards. You can also use debit and credit cards so it makes it even easier to put the journey on either your personal or business bank account.

What meals can I claim?

“Everyone must eat to live” says the tax office, which means that in general you can’t include your day to day meals as a business expense. However, there is recognition that meals while out and about traveling can end up costing more. The question then becomes is the journey one that you make infrequently and outside your normal pattern of work?

If the travel is part of your normal pattern of work then you can’t have any meals during the day e.g. a plumber travels and works out and about at various client sites. The travel costs are allowable but the subsistence is not because it is part of the normal work pattern. This also applies to contractors who mainly work in the same office. For example, a contractor who works in London can’t claim lunch or coffee expenses as the office would be deemed their place of work and such expenses would be within a normal pattern of work.

If the journey is more of a one-off and not part of the normal work pattern then you can include meal expenses during the day e.g. an architect working from home can include both travel and meals costs for a whole day out at a conference.

Staying away

If your business requires a trip with an overnight stay then you can claim for the cost of the accommodation and reasonable expenses for the evening meal and breakfast.

However, beware – anything claimed for locations too close to your base of work might not be considered to be subsistence and also bear in mind that the HMRC guidance says reasonable costs. So the Michelin star restaurant may be out of bounds while away on a business trip. Also alcohol is not subsistence unless it is purchased with a meal and even then it must be reasonable e.g. one drink or half a bottle of wine.

These rules really apply for both the self-employed and Company Directors. It is important that Company Directors only claim back the actual cost or they may find that their reimbursable expenses should be reported via the P11D. This extra level of reporting is overcome by paying for expenses directly from the business either by debit or credit card.

Recently, further rules have been brought in to further clamp down on what travel and subsistence can, and can’t be claimed. If you do have any specific questions please do contact us to discuss further.

S is for Specific

by Paula Veysey-Smith • 3 May 2026

Your New Year’s resolutions haven’t failed, they just need a sharper edge. Here's how one simple shift can change everything. “We make New Year's resolutions — let's call them goals. But they can be a bit vague. The way to make them happen is to actually define them better.” It's that time of year when those bold January intentions have quietly faded into the background. "Get fit." "Lose weight." "Grow my business." Sound familiar? You're not alone — and more importantly, you haven't failed. Your resolutions just need a better framework.

MTD for Income Tax Is Here: What It Means for You

by Paula Veysey-Smith • 13 April 2026

HMRC’s new system Making Tax Digital for Income Tax Self-Assessment has now arrived! This isn’t just a regulatory update. It’s a shift in how your records are kept, how often you report, and what you will need to do throughout the year. What’s changing for you: Under MTD for Income Tax, if you’re a sole trader or landlord within scope: You’ll need to keep digital records Quarterly updates will need to be digitally submitted to HMRC An End of Period Statement (EOPS) will need to filed A Final Declaration will be needed to finalise your tax position for the year In short: instead of one annual deadline, your tax reporting becomes a year-round process. Why using compliant bookkeeping software is now essential? To meet MTD requirements, HMRC requires fully digital record keeping and submissions . Manual spreadsheets alone are no longer sufficient You’ll need to use MTD-compliant bookkeeping software Sending your accountant paper records or incomplete information will cause delays The upside (it’s not just compliance) While MTD is mandatory, it also brings real benefits: Clear visibility of your tax position throughout the year Better cash flow planning Fewer surprises at year-end What support do you need to navigate this new system? The support of qualified accounting professionals is now more necessary than ever. We don’t expect you to navigate this alone and here’s how MPower Accounting can ensure that you not only comply with, but thrive under, this new reporting requirement. We’ll help you choose and set up the right software We work with trusted platforms such as Xero, QuickBooks, FreeAgent and others. We’ll recommend what fits your business best and get everything set up correctly. We’ll ensure you stay compliant Review your records regularly Submit your quarterly updates accurately and on time Handle all year-end submissions We’ll take the stress off your shoulders With the right system in place: Your records stay up to date automatically We can spot issues early You avoid last-minute pressure and surprises All we’ll need from you to make MTD work smoothly, is access to your chosen bookkeeping software, regular uploaded receipts so we can keep records current and a little of your time when there are questions. The more up-to-date your records are, the more value and proactive advice, we can provide. Your role is simple but important. Letting us take the strain of compliance will save you time and cause significantly less stress, enabling you to focus on what is important, that is running your business successfully. Next steps If you haven’t already: Speak to us about getting set up on MTD-compliant software Let us review your current bookkeeping process Make sure you’re ready for quarterly reporting

Why Cheap, Outsourced Bookkeeping Could Cost Your Business More

by Paula Veysey-Smith • 24 March 2026

When choosing an accountant, it’s natural to be drawn to lower fees. However, if your accountant outsources bookkeeping, especially overseas, it can lead to hidden risks, poorer service and long-term costs for your business. Here’s what you need to consider: Service Quality May Be Lower Higher risk of errors, misclassified transactions, and inaccurate reports Bookkeeping completed less regularly, usually only at key deadlines, eg, VAT quarter No dedicated bookkeeper which can be contacted Less Ongoing Support Little to no ongoing support from UK based accountant Less control and oversight from your accountant Slow response to queries and issues taking longer to resolve Cheap Fees Can Lead to Higher Costs You may pay more later to fix errors or redo work Risk of fines or penalties due to late or incorrect filings Your time being wasted with identifying errors and chasing a response Impact on Your Business Inaccurate financial data makes it harder to make confident decisions Delays can affect cash flow planning and reporting deadlines Frustration and lack of trust in your financial information and accountant What to Look For Instead Accountants who have UK based in house bookkeepers Clear communication and quick response times Consistent, reliable handling of your financial records Continued support and advice through the whole year Key Takeaway The cheapest option isn’t always the best value Investing in quality bookkeeping saves time, reduces risk, and gives you peace of mind The MPower team is proudly based in the UK, with every member carefully selected for their expertise and experience. Our role goes beyond simply completing bookkeeping tasks—we provide valuable insights and practical suggestions based on your financial data. We believe in building strong, partner-like relationships with our clients. That means we’re here for you all year round, whether you have a quick query or need deeper insight from your numbers to support better business decisions. We have welcomed many new clients to our portfolio who, initially enticed by the cheaper rate, have become disillusioned and disappointed with their existing out-sourcing accountants. Understanding that cheap is not the best option, they have thrived with the support and availability our team provide. Choosing the right accountant is about more than price, it’s about ensuring your business has accurate, timely financial information you can depend on and the support of an accountant who is readily available, at any time of the year. This is the service that MPower strives to provide, to any and every client!

Woman in blue sweater smiles while working on laptop at desk with headphones.

New Year Resolutions for a Stronger and more Successful Business

by Paula Veysey-Smith • 5 January 2026

As accountants, January is when we see optimism at its highest and inboxes at their fullest. A new year brings fresh energy, new goals, and the promise that this will be the year that your business really moves forward. But as the month moves on and realities hit, the elation and determination to press on with these new goals starts to fade and often die completely. The difference between a resolution that sticks and one that doesn’t is simple: clarity , practicality , and consistency . So instead of vague promises like “earn more” or “work less,” here are some realistic New Year’s resolutions that can genuinely help you build a stronger, more sustainable business. 1. Get Clear on Your Numbers (Not Just Your Turnover) One of the most powerful resolutions you can make is to truly understand your financial position. Turnover alone doesn’t tell the full story. Profit, cash flow, and margins matter far more. Ask yourself: Which services or products are most profitable? Where is cash getting stuck? What costs could be reduced without harming quality? Commit to reviewing your numbers monthly, not just at year-end. Confidence grows when decisions are backed by facts, not guesswork. 2. Improve Cash Flow, Not Just Sales Many businesses fail while still “making money” on paper. Cash flow is the lifeblood of your business. This year, resolve to: Invoice promptly and clearly Review payment terms Chase overdue payments consistently (and professionally) Small changes here can dramatically reduce stress and give you more freedom to plan ahead. 3. Price for Value, Not Fear A common issue I see is business owners under pricing, and resisting rate increases, because they fear losing customers. The result? Long hours, high pressure, and limited reward. A strong New Year resolution is to: Review your pricing Understand your true costs Charge in line with the value you deliver The right clients respect fair pricing. Better pricing attracts better clients. 4. Build Systems That Save Time If everything depends on you or a small team, your business will always feel heavy. Systems create breathing space. Resolve to: Document key processes Automate where possible Use software to reduce manual tasks Time saved can be reinvested in growth, strategy, or simply enjoying life outside the business. 5. Invest in Support (You Don’t Have to Do It Alone) Whether it’s professional advice, bookkeeping support, or mentoring, the most successful business owners know when to ask for help. This year, consider: Delegating tasks that drain your energy Seeking advice before problems escalate Surrounding yourself with people who both support, and challenge, you Support isn’t a cost—it’s an investment. 6. Protect Your Energy and Wellbeing Burnout helps no one. A business that relies on exhaustion is not sustainable. Make a resolution to: Set realistic boundaries Take proper breaks Define what “success” looks like for you, not just your business A healthy business owner makes better decisions and builds stronger businesses. Final Thought New Year’s resolutions don’t need to be dramatic to be effective. Small, intentional changes, applied consistently, create the biggest impact over time. This year, focus less on perfection and more on progress. Build a business that supports your life, not one that consumes it. If you’d like help turning your resolutions into practical actions, contact us NOW —it’s one of the smartest business decisions you can make. At MPOWER we work with business owners to provide clear direction from the numbers and strategies for success. Here’s to a calmer, clearer, and more confident year ahead.

Travel and subsistence – some basics