As a dental professional, understanding HMRC rules on travel and subsistence can help ensure your claims are compliant and efficient. Below is a helpful summary to guide you through the key points.

1. What travel and subsistence expenses can I claim?

You may claim costs that are wholly, exclusively, and necessarily incurred for business purposes. This includes:

• Attending training courses (related to your dental work)
• Consulting or working at a different dental practice
• Travelling between multiple practice locations on the same day
• Attending business meetings or conferences

If business-related journeys have been made by car, it may be useful to keep a log of your mileage throughout the year in order to make an accurate claim. Please remember that if HMRC choose to investigate the expense, you will need to be able to explain and justify it to them.

For meal expenses, the following conditions must be met:

• The cost must be incurred after the business trip has started
• The trip must be beyond your normal commute
• The journey must last five hours or more

2. What expenses are not allowed?

Travel and subsistence costs cannot be claimed for:

• Normal daily commuting between home and your regular workplace
• Any trip not entirely for business – for example, attending a one-day course abroad and combining it with a personal holiday

Always ensure the travel is purely for business and does not contain any element of personal benefit, or the claim may be disallowed.

3. Where do I post travel and subsistence expenses in Xero?

To keep your records organised and ensure correct categorisation in Xero:

• Use the existing Travel or Travel – National / Travel – International codes
• If you prefer, we can create a bespoke code for you (such as Travel & Subsistence)

This helps streamline bookkeeping and ensures consistency in reporting.

4. What are HMRC’s rules on travel and subsistence?

If you’re reimbursing or covering travel costs for yourself or your employees, HMRC has specific rules regarding tax, National Insurance, and reporting obligations. These rules apply to costs associated with:

• Travel (e.g. car mileage, public transport)
• Reimbursement for travel expenses
• Accommodation (for overnight stays)
• Meals and other travel-related costs (‘subsistence’)

Subsistence includes meals, parking, tolls, congestion charges, or necessary business-related phone calls while travelling.

Different rules may apply depending on the mode of travel – for example, public transport requires separate reporting considerations.

5. When are travel and subsistence costs exempt from reporting or tax?

You may be exempt from reporting or paying tax/National Insurance if the cost relates to:

• A work bus service
• An employee with a disability (in qualifying circumstances)
• A taxi home after occasional and irregular late-night working
• A taxi home when a car-sharing system is temporarily unavailable
• Bicycles or cycle safety equipment
• Travel disruption caused by industrial action (e.g. train strikes)

Additionally, you are not required to report certain business-related benefits, including:

• Business travel
• Work-related phone bills
• Business entertainment expenses
• Uniforms and tools necessary for work

To benefit from an exemption, one of the following must apply:

• You pay a flat rate to the employee as part of their earnings. This must be either a benchmark rate or a bespoke rate approved by HMRC
• You reimburse the actual cost incurred by the employee for business travel

6. Need help or have questions?

If you’re unsure about what qualifies as a legitimate travel or subsistence expense, or how to post items in Xero correctly, we’re happy to help. Please don’t hesitate to contact us.

Please note: HMRC updates rates and rules from time to time. Always refer to the most recent guidelines or consult us for current information.