HMRC review travel and subsistence claims

In light of two recent tribunal judgments, HMRC have re-affirmed their stance on travel and subsistence claims. We have highlighted the points below, as this may be something you need to consider in your day to day business.

HMRC won both tribunal cases by emphasising the “regular and predictable” nature of business travel, regardless of whether it is to a fixed place of work or not. This means that If you are attending one place of work regularly for a prolonged period, any fuel or other type of travel or subsistence are not allowable expenses.

HMRC, will allow travel if the journey is deemed a “special trip.” The example they give to define a “special trip”, is a doctor who uses his home as his main office and but goes to the hospital to see patients. Occasionally the doctor leaves his paperwork at home. The doctor’s journey home to collect the paperwork before seeing the patient is allowable, however their everyday journey to the hospital is not.

HMRC are carrying out more investigations and it seems to be where they believe the claims are “excessive.”

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