Business & Technology
Business owners warned over travel tax as HMRC scrutiny increases
Chartered accountancy firm Ridgefield Consulting says that mixing business and leisure on the same trip is increasing confusion about what can legitimately be claimed.
The firm warns that, with increased scrutiny from HM Revenue & Customs, mistakes can lead to penalties, interest on unpaid tax or even further investigation.
Where a trip is undertaken solely for business purposes, costs such as travel, accommodation, subsistence and conference fees may be allowable, provided they are incurred “wholly and exclusively” for the purposes of the trade.
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However, once any personal element is introduced – for example, extending a stay or taking family members along – the position becomes more complex and not all costs will remain deductible.
Flights are one common flashpoint, with only the proportion attributable to business use normally claimable if a trip includes both work and holiday time.
Hotel bills must also be split, with additional nights for leisure funded privately and any apportionment carried out on a reasonable basis.
Family members may accompany a business traveller, but their travel and accommodation costs are treated as personal expenditure and should be excluded from business claims.
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Subsistence is generally allowable only where it arises because of business travel to a temporary or irregular place of work, not for entertainment or non‑essential dining.
Ridgefield Consulting says the practical difficulty lies less in the rules themselves and more in applying them when trips blend work and leisure.
The firm advises business owners to establish and document the primary purpose of each trip before booking, clearly identifying the meetings, conferences or client engagements involved.
Any planned personal time should be recorded separately from the outset to make it easier to distinguish between business and private costs later.
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It also recommends separating costs in real time rather than retrospectively, allocating flights, accommodation and subsistence between business and leisure as they are incurred.
Accurate records, including invoices and notes of business activity, help to strengthen the audit trail if HMRC reviews expense claims.
Managing director Simon Thomas said: “Many business owners understand that travel costs can be claimed when incurred for business purposes.
“However, as we move further into a hybrid working world, where trips increasingly combine both business and leisure, the distinction between allowable and non‑allowable expenses is becoming less clear.
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“This lack of clarity not only raises the risk of incorrectly claimed expenses but also increases the likelihood of fines or, in the worst-case scenario, HMRC investigations.
“A common misconception is that the presence of a business meeting or event allows the entire trip to be treated as deductible.
“In reality, only costs that are directly attributable to business activity can be claimed.
“Where personal elements are introduced, it is essential that costs are clearly separated and documented to ensure compliance and unexpected tax liabilities.”
With more businesses moving onto Making Tax Digital and reporting more frequently, Ridgefield Consulting says clear separation of business and personal costs, accurate apportionment and robust record‑keeping are increasingly important to avoid problems with HMRC.
The Barclays van outside Morrisons in Carterton is set to shut after a gradual drop in customer usage, the town council has announced.
The service is set to shut on Thursday, October 22.
The council said users of the van will still be able to pay cash and cheques into Barclays account at the nearby Post Office.
Instead customers will now have to travel six miles to the nearest Barclays branch in Witney.
The council said “please share this post with anyone who may be affected so they are aware of the upcoming change”.
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A Barclays local van is a mobile, cashless banking vehicle that travels to community to provide face-to-face support where traditional branches have closed.
Its part of Barclays flexible banking network, which includes pods, vans, libraries, and town halls.
In February 2023, Barclays announced nearly 100 branch closures throughout 2024 and 2025, in addition to the 177 branches it closed in 2023.
This included the branch in Abingdon, which went on to close in February 2024.
Earlier this year bosses at Barclays announced plans to reopen more high-street branches, in a dramatic U-turn for the bank.
Over the past decade, thousands of high-street bank branches have shut their doors across the country, including those belonging to Barclays, leaving just 206 still operating throughout the UK.
Freddie Van Mierlo, who represents Henley and Thame, has urged the company to prioritise fixing leaking infrastructure, which reportedly loses 2.87 billion litres of water daily.
This comes after the Environment Agency declared the Thames Valley area in drought.
The responsibility of maintaining water resources during a drought lies with water companies.
Thames Water has already implemented a hosepipe ban in the area since July 22, 2026.
Chris Weston, speaking on the BBC’s Big Boss Interview podcast, stated that some of the firm’s targets were beyond what they could achieve.
He said: “We have to hit a certain level of leakage, but it is so far in excess of what we are capable of doing, I think anyone would be capable of doing, however much money you invested, that it is not going to be achievable.”
Thames Water, the largest water company in the UK, has been under fire recently for its handling of sewage discharges and leaks.
Last year, it was fined a record £122.7 million by regulator Ofwat, largely for breaching sewage spill rules.
However, Mr Van Mierlo argues that a network-wide hosepipe ban would save around 577 million litres a day.
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He said: “So, although measures such as hosepipe bans are required during drought, it seems fixing leaking infrastructure would be a significantly more effective use of time.
“In your most recent interview with the BBC, you commented that targets to fix leakages are ‘unrealistic’, this is incredible insensitive considering we are experiencing a 1-in-500-year drought event.
“After reviewing the company’s existing drought plans, I am further concerned that the actions outlined in the early stages of drought are limited to awareness campaigns to reduce water use and hosepipe bans.
“Nowhere, even when drought progresses to severe, is there mention of emergency repairs to leaks in the system.”
He added that constituents have been contacting him daily about leaks due to Thames Water infrastructure and the lack of action following their reports.
He said: “Not only do these leaks damage property, but now in a time of drought, Thames Water are washing away an essential resource.”
The company, serving 16 million customers in London and parts of southern England, treats 4.3 billion litres of waste daily.
Mr Weston mentioned that “99.5 per cent of the time” the waste is treated successfully, although “sometimes something goes wrong”.
He added that while the company wants to improve on pollution, the chance of getting to zero pollution was “very, very slim”.
Fraser Jones, the director of Barefoot Oxford, has made clear that all its shops are staying open and there will be no job losses, as the company ‘streamlines’.
This process has seen Barefoot Oxford Limited go into liquidation with liquidators from JT Maxwell Ltd appointed on July 29. A resolution to wind up the company was passed on the same day.
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Fraser Jones, director of Barefoot Oxford, said: “Simply a reorganisation and no changes to the business at all.
“All shops staying open and no job losses.
“We are streamlining to the one company name of Barefoot Bakery, how we are best known.”
The business has three branches across Oxford in North Parade Avenue, Walton Street and Cowley Road and one in Kidlington.
It describes itself as a “small artisan bakery”.
It added: “We started out making cakes from our kitchen at home and selling them on a market stall in Oxford.
“Since then, the business has grown from strength to strength.”
Indeed, in June this year, cast of the smash hit romantic musical Waitress visited the business’ Jericho branch to publicise their performances at the New Theatre in Oxford.
It coincided with the 12th anniversary of the shop, run by Mr Jones and wife Emily.
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Barefoot Oxford – the company going under which Mr Jones is director of – reported creditors falling within a year of £375,000 in its latest accounts to March 31, 2025.
Its average number of employees was 33.
Meanwhile Barefoot Bakery Ltd – which Mr Jones is also a director of – reported creditors of £79,000 falling within a year and five employees.
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