Whether you're hopping on a flight to meet a client in Berlin or answering emails from a beach café in Bali, travel is an increasingly common part of life for UK business owners.

But when does a trip count as a legitimate business expense? 

What happens when you mix work with leisure? 

Can a digital nomad claim costs while living overseas long-term?

This guide will break it all down for you. Clearly, practically, and with real-world examples.

What HMRC Considers a Business Trip

Let’s start with what counts as a "wholly and exclusively" business expense — a key phrase HMRC uses.

If you're travelling purely for business, many of your costs are potentially tax-deductible, including:

• Flights and transport
• Accommodation
• Meals (reasonable ones, not lobster and champagne)
• Wi-Fi and workspace costs
• Visas (if specifically needed for the work trip)
• Insurance (relevant to business activities)
  

Real Example: Business-Only Travel

Emma runs a UK-based ecommerce consultancy and flies to Amsterdam for a 3-day workshop with a client. She books return flights, stays in a hotel for two nights, and eats at nearby restaurants while working long hours.

All reasonable costs. The flights, hotel, meals, taxi fares can be claimed through the business.

Combining Work and Leisure: What’s Allowed?

This is where things get a bit trickier. If you tack a holiday onto a work trip, or mix sightseeing with sales calls, HMRC will expect clear boundaries between business and personal spend.

What You Can’t Claim:

• Personal meals with friends or family
  
• Sightseeing tours or tourist attractions
  
• Extra hotel nights for holiday purposes
  
• Flights for a partner or children (unless they’re employees and on business too)
  

What You Can Claim:

• The proportion of costs directly related to the business part of your trip
  

Real Example: Mixing Business with Holiday

James is a UK-based videographer who travels to New York to film a client event over 2 days, then stays an extra 5 days for a holiday.

He can claim the flight (as it was needed for business), 2 nights’ hotel, and meals during the client work.

The 5 extra nights of hotel and any leisure expenses cannot be claimed.

What If You Work While Abroad? (Digital Nomad Life)

The rise of digital nomadism means more business owners are choosing to live and work abroad for longer periods. 

But this doesn't automatically make all travel costs claimable.

HMRC Will Ask:

• Is this a temporary business trip or a lifestyle choice?
  
• Are you based overseas purely for business reasons, or is it personal preference?
  
• Is your home base still in the UK?
  

Real Example: Living Abroad as a Digital Nomad

Sophie, a UK marketing consultant, decides to live in Thailand for 6 months. 

She continues working with UK clients, mostly remotely.

Sophie can't claim flights, accommodation, or day-to-day living costs. HMRC would view this as a personal lifestyle decision.

However, if she attends a business event or conference while in Thailand, or books coworking space for meetings, those direct costs might be deductible.

Temporary Overseas Work vs. Emigration

If you’re moving abroad permanently, your tax situation changes, including where you pay tax and what income you report. 

You may become non-UK resident, which affects what income is taxable and whether you're still eligible to trade as a UK business.

If you’re only going abroad temporarily, and your home base and business remain UK-rooted, you’ll typically continue to be UK resident for tax and must report all income to HMRC.

Curve Accountancy offers residency checks and tailored tax guidance for business owners working overseas long-term.

Common Claimable Travel Expenses for Business Owners

Here’s a quick breakdown of what’s usually allowable, provided the trip is genuinely for business:

Expense Type: Return Flights

Claimable? Yes

Notes: If travel is 100% business-related

Expense Type: Hotels

Claimable? Yes

Notes: For business portion only

Expense Type: Travel Insurance

Claimable? Yes

Notes: If needed for business activities

Expense Type: Meals

Claimable? Yes

Notes: Reasonable meals during travel

Expense Type: Partner’s Expenses

Claimable? No

Notes: Unless they work for your business and are on business

Expense Type: Leisure Activities

Claimable? No

Notes: Not allowed

Expense Type: Local Transport (Taxis, Trains)

Claimable? Yes

Notes: If used for business meetings

What About Visas & Work Permits?

If you need a visa specifically to conduct business, that can be a claimable cost.

However, if you're applying for a long-term visa for lifestyle purposes, or one that allows you to reside in a country (not just do business temporarily), it's unlikely to be deductible.

Real Example: Visa Claim

Liam, a UK-based tech consultant, flies to Dubai to deliver a training session and requires a temporary business visa.

The visa fee is an allowable business expense.

Do I Need to Keep My UK Office or Home?

If you're a digital nomad but still have a UK registered business and address, it's easier to remain compliant. You should also:

• Maintain UK tax returns
• Continue using UK bank accounts for business income
• Use your UK address for business correspondence
• Track where your income is generated (UK vs. overseas)
  

If you let go of everything UK-based, HMRC may challenge whether your business is genuinely UK-based.

Keeping Records for Business Travel Abroad

Documentation is everything.

You should keep:

• Receipts (physical and digital)
• Booking confirmations
• Itineraries
• Meeting agendas or event tickets
• Clear separation between personal and business transactions
  

If in doubt, record everything and let your accountant help sort it out.

Travel Expense Checklist for Business Owners

Before travelling, ask yourself:

1. Is this trip “wholly and exclusively” for business?
2. Am I combining personal time? Can I split the costs clearly?
3. Am I keeping good records?
4. Is this a one-off trip or part of a digital nomad lifestyle?
5. Does this impact my UK tax residency or company setup?
   

If you’re unsure, speak to your accountant first. A 15-minute conversation could save you a heap of trouble with HMRC later.

Final Thoughts: It's All About Intent and Evidence

HMRC doesn’t mind you travelling for work but they care why you’re going, how you spend, and whether it’s reasonable. 

The more clear-cut your purpose and paperwork, the safer your claims.

Whether you're a business coach off to Bali, a photographer heading to Paris, or a developer working from Dubai, make sure your finances stay as clean as your passport stamps.

Need Personalised Advice?

At Curve Accountancy, we help UK entrepreneurs and small business owners navigate the complexities of international travel, digital nomad life, and expense claims.

Book a call or email us to get tailored, jargon-free support. Whether you're planning a one-off trip or a full remote lifestyle.