Business travel can be tricky to manage and determine exactly which instances can be covered by business expenses, so, what counts as business travel?
The term is generally defined as travel that has been incurred solely for work purposes, so this would exclude daily commutes or trips to the shop on your lunch break.
What counts as business travel?
Networking events
Networking events are a fantastic way of making new connections, meeting potential clients and increasing visibility of your brand. You may be required to attend a networking event as part of your role. The cost of travel to and from the event could reasonably be claimed back with travel expenses.
Meetings and pitches
Travelling to meetings with clients, suppliers and potential clients is a vital part of many jobs. Travelling to and from these meetings can be claimed back on travel expenses from your employer, whether local or international.
Work trips
Work trips may be required as part of your role and more commonplace in larger corporations that may have offices or locations in a number of cities or countries. This travel would be claimable on expenses. For longer trips or international travel, it may be commonplace for the organisation to arrange the travel beforehand, meaning that the cost may be instantly absorbed by the company.
What counts as business travel for employees?
The processes of claiming back travel expenses may vary from company to company so it is always recommended to check this with your line manager before you incur any costs.
Travel expense claims often go through a line manager or finance department and generally require proof of receipt. This could be a train ticket, taxi receipt or bus ticket.
If travelling by car, most businesses will have a system in place to calculate the cost of fuel used on a journey. This will usually be a standard calculation used across the company, however it is always best to check with your employer beforehand, and confirming exactly what information you will need to provide.
How do I manage employees’ travel expenses?
If your business requires your employees to attend off site meetings and events or make trips away from their usual working location, you are generally required to reimburse your staff for these expenses.
Travel allowance is not a legal requirement for employers to give to their staff however it is common practice among firms that require travel from their teams.
However, if you do cover travel expenses there are certain tax, National Insurance and reporting obligations that you need to be aware of. Check the Government guidance for the most up to date information on what to report.
Larger companies may have established processes for dealing with travel expenses, but smaller businesses should have a process in place as well.
It may not need to be as complex, or factor in larger costs such as those incurred with mass international travel, but a bus journey to a local networking event or travel to a new business meeting would equally fall under business travel that can reasonably be expensed.
If you are struggling to understand and process business travel expenses, then don’t hesitate to get in touch with our team. Our experts are here to help.