Claim Tax Relief on Qualifying Business Travel

With the cost of living in the UK continuing to put pressure on household budgets, every little helps. As a popular supermarket slogan reminds us, we are all looking for ways to make our money go further!

Owning and running a car is expensive. Between fuel, insurance, maintenance and other motoring costs, the bills can soon add up. And if your job requires you to travel between different workplaces, clients or temporary work locations, your travel expenses can increase even further.

Over the years, I have come across many people who are unaware that they may be entitled to tax relief on certain work-related travel expenses.

So, in this blog post, I want to explain how you could reduce the cost of business travel by claiming the tax relief you are entitled to for the 2026–27 tax year.

The important thing to remember is that not every journey to work qualifies for tax relief. Understanding the rules before making a claim can save you money and help you avoid unnecessary problems with HM Revenue & Customs (HMRC).

1. How can claiming tax relief reduce your travel costs?

One way to reduce the financial burden of business travel is to claim tax relief on qualifying employment expenses that you have paid for yourself and that your employer has not reimbursed.

The amount of tax relief you receive depends on the allowable expense and the rate of Income Tax that applies to you.

For example, let us assume that Tim has £1,000 of qualifying business travel expenses that he has paid himself and has not been reimbursed for.

His potential tax savings would be:

• At 20% Income Tax: £200 in tax relief.
• At 40% Income Tax: £400 in tax relief.
• At 45% Income Tax: £450 in tax relief.

This means that, in Tim’s case, the £1,000 expense could effectively cost him £800, £600 or £550, respectively, after tax relief.

Of course, these figures are illustrative. The actual relief will depend on Tim’s circumstances, the tax year in question and whether the expenses qualify under HMRC’s rules.

I always encourage people to check whether they are entitled to legitimate tax relief before assuming that every work-related expense must come out of their own pocket.

2. What qualifies as a work-related travel expense?

For an employed person, the general rule is that the journey must be made in performing the duties of the job or in travelling to a qualifying temporary workplace. Ordinary commuting and private journeys do not qualify.

Depending on the circumstances, qualifying expenses may include:

• Public transport fares for business journeys.
• Business mileage when using your own car or van.
• Necessary hotel accommodation for an eligible overnight business trip.
• Reasonable food and drink costs associated with qualifying business travel.
• Business-related parking fees, tolls and congestion charges.

The expense must meet the relevant tax rules, and you must have paid it yourself to claim relief on it.

For example, if your employer sends you to a client meeting in another city and you pay for the train ticket yourself, you may be able to claim tax relief if your employer does not reimburse you.

Similarly, if an overnight stay is necessary for a qualifying business trip, the eligible accommodation costs may qualify for relief.

However, simply spending money while travelling does not automatically make it tax-deductible. The circumstances of the journey and the purpose of the expense matter.

3. Can you claim tax relief on the journey from home to work?

This is where I would urge you to be particularly careful.

Ordinary commuting between your home and your permanent workplace is generally not an allowable employment expense.

For example, if you live in Birmingham and travel to your usual office in Birmingham every morning, you normally cannot claim tax relief on the cost of that journey, even if you pay for your own fuel, train tickets, or parking.

Your employer requiring you to attend the office does not, by itself, make your commuting costs allowable.

I have seen how confusing this area can be, particularly when people hear that colleagues or friends have received tax refunds for their travel expenses.

The important point is that every claim must be based on the individual’s actual circumstances. Receiving a tax refund does not necessarily mean that a claim was correct.

HMRC can review claims and request supporting evidence. If a claim is incorrect, the tax relief may have to be repaid, and interest or penalties may apply depending on the circumstances.

This is why I always recommend checking your eligibility before submitting a claim.

4. When can travelling from home to work qualify for tax relief?

One important exception concerns travel to a temporary workplace.

A temporary workplace is generally a place where you attend to perform a task of limited duration or for a temporary purpose, subject to the detailed rules.

For example, imagine that your normal workplace is in Manchester, but your employer sends you to work at another location in Leeds for a temporary assignment.

Depending on the facts, the journey from your home to the Leeds workplace may qualify for tax relief.

However, there is an important rule to understand: the 24-month rule.

Broadly, if you attend a workplace for a limited duration or temporary purpose, it may be treated as a permanent workplace if you spend, or are expected to spend, 40% or more of your working time there over a period lasting, or expected to last, more than 24 months.

Both the time and working-time conditions matter. A workplace does not automatically qualify as temporary simply because you have been told that your assignment is temporary.

If your circumstances change and you are expected to remain at a location for longer than originally planned, the tax treatment may change too.

There are also other restrictions, including rules concerning workplaces that form part of your normal employment duties.

My advice is to look at the specific facts before claiming. If you are unsure whether a workplace is temporary or permanent, seek professional tax advice.

5. What are the approved mileage rates for 2026–27?

If you use your own car or van for qualifying business journeys, the approved mileage allowance rates are particularly important for the 2026–27 tax year.

The rates increased from 6 April 2026.

These are the approved mileage rates used to calculate tax-free mileage payments from an employer and, where appropriate, mileage allowance relief.

For cars and vans, the 10,000-mile threshold applies to the total qualifying business mileage for the tax year, rather than separately to each vehicle.

What happens if your employer pays you less than the approved mileage rate?

Suppose you use your own car for 2,000 qualifying business miles during the 2026–27 tax year.

At 55p per mile, the approved amount is:

2,000 miles × £0.55 = £1,100.

If your employer pays you only 30p per mile, you receive £600.

The difference is £500.

If you meet the conditions for Mileage Allowance Relief, you may be able to claim tax relief on that £500 shortfall.

For a taxpayer receiving relief at 20%, this would mean £100 in tax relief. At 40%, it would mean £200.

Notice the difference: you are not automatically receiving the £500 shortfall as a cash refund. You are receiving tax relief on the eligible amount.

If your employer pays nothing towards qualifying business mileage, you may also be able to claim relief using the applicable approved mileage rates, subject to the rules.

You should keep accurate mileage records, including the dates, destinations and business purposes of your journeys

6. What happens if your employer pays more than the approved mileage rate?

Your employer can choose to pay more than the approved mileage rate.

However, for an employee using their own car or van, payments above the applicable approved amount will generally create a taxable excess.

For example, if the approved amount for your qualifying business mileage is £1,100 but your employer pays you £1,300, the £200 excess will generally be subject to Income Tax.

The employer must report the excess to HMRC and apply the appropriate tax treatment. Depending on the circumstances, this may involve reporting it on a P11D or through payroll.

National Insurance treatment can differ from Income Tax treatment, so it is important not to assume that the same calculation automatically applies to both.

Also, the approved mileage rates are not a compulsory reimbursement rate. Your employer may pay less, more or nothing at all, subject to the applicable rules and employment arrangements.

If you receive less than the approved amount, you may be entitled to claim tax relief on the eligible difference.

7. Can you claim for travel expenses that your employer has already reimbursed?

Generally, you cannot claim tax relief on expenses that your employer has already reimbursed in full.

For example, if you spend £200 on a qualifying business trip and your employer reimburses the full £200, you cannot claim tax relief on that same £200 expense.

Doing so would mean claiming relief on a cost you have not ultimately borne yourself.

If your employer reimburses only part of an eligible expense, you may be able to claim relief on the qualifying amount that remains unreimbursed.

Mileage allowance relief is a specific example: an employee may qualify for relief on the difference between the applicable approved mileage amount and the mileage payments received.

The general principle is straightforward: you must calculate your claim carefully and avoid claiming the same expense twice.

8. How do you claim tax relief on business travel from HMRC?

If you are an employee and believe you have paid qualifying business travel expenses that your employer has not reimbursed, you may be able to claim tax relief directly from HMRC.

The method you use depends on your circumstances and the amount you are claiming.

Claims of £2,500 or less

For eligible employment expense claims of £2,500 or less in a tax year, you can generally use HMRC’s online service or submit form P87, depending on the type of claim and your circumstances.

You may be asked to provide evidence to support your claim.

Claims above £2,500

If your allowable employment expenses exceed £2,500 for the tax year, you will generally need to claim through Self Assessment.

If you already complete a Self Assessment tax return, you should normally include your eligible employment expenses in that return.

How far back can you claim?

HMRC generally allows claims for the current tax year and the four previous tax years, subject to the applicable deadlines and claim requirements.

As the 2026–27 tax year runs from 6 April 2026 to 5 April 2027, the exact years available to claim will depend on when you submit your claim.

What information should you keep?

Before making a claim, I recommend gathering:

• Mileage logs showing the date, destination and business purpose of each journey.
• Receipts for train tickets, accommodation, parking and other eligible expenses.
• Details of any amounts your employer has reimbursed.
• Evidence of the temporary nature of a workplace, where relevant.

You can start by visiting the official HMRC guidance:

• Claim tax relief on travel and overnight expenses
• Claim tax relief on vehicles you use for work
• Find out how to claim employment expense relief by post

I would always recommend using HMRC’s official guidance to check the latest requirements before submitting your claim.

Conclusion: Can tax relief help reduce your motoring costs?

Thank you for taking the time to read my blog.

I hope this article has helped explain how claiming tax relief on qualifying business travel may reduce some of the costs associated with using your car for work.

With motoring expenses continuing to put pressure on personal finances, it is worth checking whether you are entitled to relief that you have not yet claimed.

However, it is equally important to understand the rules. Ordinary commuting does not normally qualify, reimbursement affects what you can claim, and the rules for temporary workplaces can be more complicated than they first appear.

My advice is simple: keep good records, check your eligibility and make sure your claim is accurate.

If you have qualifying business travel expenses and would like support in understanding your entitlement or preparing a claim, please get in touch. We would be happy to discuss your circumstances and help you understand the next steps.

Disclaimer: This article provides general information about UK employment travel expenses for the 2026–27 tax year. Tax treatment depends on individual circumstances, and the rules may change. Please check the latest HMRC guidance or seek professional advice before making a claim.