We all love a summer getaway, but for many business owners, it’s hard to completely switch off. And sometimes, that sunny break becomes an opportunity to meet a client, pop in on a supplier, or check out a potential new venture.
But what does that mean for your tax return?
Can you claim travel, hotel, or mileage expenses if you do a bit of business while on holiday?
The answer is: sometimes. Let’s break it down.
The Basic Rule: “Wholly and Exclusively”
HMRC says that to claim an expense, it must be incurred “wholly and exclusively” for the purposes of your trade. That means:
- It must be for business only
- Personal or private use isn’t allowed—unless the business part is clearly identifiable
But in real life, things aren’t always black and white.
When You Can Claim — and When You Can’t
Identifiable Business Portion? You’re Good to Go
If you can clearly separate the business element from the personal side, you may be able to claim a proportion of the cost.
Example:
You’re holidaying in Torquay and decide to drive to Plymouth for a supplier meeting.
You can claim the mileage just for the Plymouth round trip—but not for getting to Torquay or any general holiday travel.
Top Tip: Keep a mileage log or diary. It shows you’ve made a genuine business journey and helps back up your claim if HMRC asks.
Dual Purpose? No Claim Allowed
If you can’t split the cost into a clear business vs. personal portion, then you can’t claim any of it.
Example:
You fly to Rome for a romantic weekend and tag on a quick client meeting while you’re there.
Because the main purpose was personal, the trip fails the “wholly and exclusively” test—even though you did some business.
What About Incidental Private Benefits?
There is some leniency.
If the trip is genuinely for business, but you enjoy a bit of sunshine or squeeze in a walk on the beach, that’s usually fine.
Example:
You fly to Portugal for a supplier meeting. The meeting is the sole purpose of the trip—but of course, you enjoy the nice weather while you’re there.
In this case, you can usually claim the full cost, including flights and hotel, as long as:
- You’re not accompanied by a non-business guest (like a partner or family member), and
- You’ve kept proper documentation
Keep the Paper Trail
No matter what the purpose of your trip is, documentation is key.
Keep hold of:
- Meeting agendas, notes, or minutes
- Emails confirming business appointments
- Event tickets, receipts, and bookings
- Mileage logs or flight confirmations
Limited company? Pay for business travel through the company account if possible.
HMRC has been known to check airline records to confirm who travelled and whether family came along. If a non-employee joins you, their portion of the cost can’t be claimed.
Practical Recap
| Scenario | Can You Claim? |
| Business-only trip | ✅ Yes, in full (even with minor personal benefit) |
| Holiday with clear business side-trip | ✅ Partially (only the business leg) |
| Holiday with minor business add-on | ❌ No (fails the “wholly and exclusively” test) |
| Can’t split business/personal element | ❌ No deduction allowed |
Not Sure What’s Claimable on Your Next Trip?
It’s perfectly legal to mix business with pleasure—but the tax rules aren’t as relaxed as a holiday drink by the pool.
If you’re unsure what qualifies—or want to maximise your legitimate travel claims—get in touch.
Speak to Jon or the team today for expert advice on getting it right and staying compliant.
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Any questions?
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