If you upgrade your usual standard or economy class travel so you can work en route, can you claim a tax deduction for the extra cost?

Usually, you are allowed to claim a tax deduction for the cost of travelling on business. If you are a director or employee and the employer pays for or reimburses the cost of business travel, this is exempt from tax and NI.

But is there a limit to how much you can spend to still be tax and NI-free?

HMRC leaves it up to you or your employer to decide on a travel policy and is only concerned when if there is a reason other than business for the more expensive travel.

So, if the chair of a company hires a helicopter to travel from one city to another for a meeting then back again for another meeting, and he or she could have taken a business class ticket on a plane at a much lower cost, the claim could be upheld because the helicopter enables the chair to attend both meetings which would not be the case using air travel.

Essentially, HMRC will always ask if the extra expense is necessary. You can claim a tax deduction for upgrading travel arrangements as long as the purpose for doing os is business.


If you are unclear on this topics and need to speak to Vincent & Co call 01803 500500 and we will advise you.