What sort of travel can I claim for as a limited company? | Crunch, image of someone on a bus

Your travel expenses are generally allowed as a business expense where all of the following conditions apply:

  1. You’re responsible for paying the travel costs
  2. The travel you’re undertaking is necessary for your work, i.e. your attendance at the place you’re travelling to is mandatory
  3. The travel shouldn’t be ‘ordinary commuting’. HMRC defines a commute as the journey you make between your home and permanent workplace.

A permanent workplace is defined as somewhere you attend regularly, which forms a ‘base’ to work from, or where you must attend to perform certain duties. For example, if you work in the same office, nine-to-five, Monday to Friday.

However, HMRC also look for patterns in your travel. So, for example, if your work regularly involves a meeting at a specific office every Monday afternoon, this could be a ‘pattern of travel’ and mean that this mileage can’t be claimed.

To be considered a valid business trip, the journey must be from one workplace to another, for the purpose of work. Curious about the travel expenses you'll amount at the end of the tax year? Why not input your figures into our mileage tax calculator, and we'll generate an estimated cost based on your individual business travel routine.

Here are some exceptions:

The 24 month rule

A workplace will be regarded as permanent if the following apply:

  • You’ve spent more than 40% of your total working time at this same location

AND

  • You’ve worked there continuously for 24 months

OR

  • You intend to be at the workplace for more than 24 months

OR

A workplace can be a geographical area, even if you perform work there for different clients. Please see HMRC’s guidance on the matter.

If you do have a permanent workplace, then any travel, rent and subsistence expenses for that location and journey won’t be allowable as a business expense, because the travel would be considered ordinary commuting.

The workplace becomes permanent from the moment that you show intent to remain there for more than 24 months. You can claim for any travel to the temporary workplace up until the point of forming this intention.

Forming the intention might be implied by signing a contract, for instance.

Trouble recording expenses?

Check out our mileage expenses spreadsheet – it’s a great way to stay organised.

If you’re a Crunch client then you may like to view our Help Centre article on how to record travel expenses in the Crunch App.

Business Expenses - Our PDF guide

Speak to an accounting expert

If you're unsure what level of support you need, our friendly team are on hand to help you pick the right package for you.
team photo off all crunch team
Share this post
Lucinda Watkinson
Head of Accounting
Updated on
September 23, 2020

Knowledge Hubs

Speak to the experts

Our UK based team of experts are ready to help you find the best accounting package for you and your business.

icon of a green tick
Certified Accountants
icon of a green tick
HMRC Approved
Patrick,
Senior Sales Advisor
Book a meeting
Crunch Pro Tip
Using cloud-based accountancy software to manage your finances gives any small business a big advantage!

At Crunch we provide affordable cutting-edge, easy-to-use software with real human support from expert chartered accountants. That’s probably why 81% of our clients would recommend Crunch.

Crunch Pro Tip
Did you know - you have access to a Chartered Certified accountant for free on our paid subscriptions?

Book a call with our one accountants and get your questions answered. Just £24.50 +VAT for Crunch Free users.

Crunch Pro Tip
Did you know - Financial forecasting can allow you to predict any financial changes in your business and see the results of potential new ideas?

Our partnership with Brixx forecasting software gives our paid plan clients access to a financial forecasting tool for free.

Crunch Pro Tip
Did you know - Your Self Assessment has to be filed by the 31st of January deadline?

Crunch’s Self Assessment service provides an expert accountant to complete, check, and file your Self Assessment for you for just £140 +VAT.

Crunch Pro Tip
Did you know - We have a free plan that is great for sole traders and limited companies?

Why not see for yourself? It’s simple and easy to use and 100% free.