Can You Really Claim Flights as a Business Expense?

If you’re a UK business owner, especially in the ecommerce, creative, or service sector, chances are you’ve had to travel — either to meet suppliers, attend industry events, or create content for your brand. But can you claim the cost of those flights, hotels, and meals through your company? This article will explore questions like "Can You Claim Flights as a Business Expense?” and provide guidance from Merranti Accounting.

The short answer is yes, but only under specific conditions set by HMRC.

This article explains:

• When flights and travel are allowable business expenses
• What documentation is required to claim them
• The risks of combining business and personal travel
• How to treat director travel and content creation trips for tax
• What VAT can (and can’t) be recovered on travel costs

Let’s explore how your business can benefit from correctly claiming business travel expenses — and avoid penalties from getting it wrong.

What Qualifies as a Business Travel Expense in the UK?

Under UK Corporation Tax rules, a business can claim tax relief on expenses that are “wholly and exclusively” incurred for the purpose of the trade.

HMRC provides a clear framework under S54 CTA 2009, which applies to companies, and similar principles apply for sole traders and partnerships under ITTOIA 2005.

Common Examples of Allowable Business Travel:

• Flights to meet suppliers or manufacturers
• Travel to industry trade shows, seminars, or conferences
• Accommodation and subsistence (meals) while away
• Travel to filming locations for company marketing content
• Taxi, train, or airport transfers for business purposes

Claiming Flights for Supplier Meetings or Business Development

If you’re travelling overseas (e.g. to Europe, Asia, or the US) to:

• Meet with a current or prospective supplier
• Inspect manufacturing operations
• Negotiate business deals or contracts

Then the flight costs are fully allowable as a business expense. This includes:

• Economy, business class, or premium travel (as long as reasonable)
• Accommodation during the business trip
• Subsistence costs incurred while travelling

Important: You must be able to prove that the travel was for business only.

Claiming Flights for Promotional Content: Photoshoots and Videos

Many businesses, especially in ecommerce and branding, now send directors or staff abroad to:

• Film promotional videos
• Take product photos in lifestyle settings
• Shoot social media or advertising content

So, can you claim these costs?

Yes – but conditions apply.

If the purpose of the travel is to create marketing or advertising content for the business, and:

• The individuals travelling are working (e.g. directors modelling or presenting)
• The content is clearly used by the company for promotional purposes
• There is no personal benefit or leisure element involved

Then the trip is tax deductible.

What HMRC Looks For in a Valid Travel Claim

HMRC is strict about dual-purpose or private-use expenses. If there’s any personal benefit derived from a trip (such as a holiday or extending the trip for sightseeing), the expense may be:

• Partially disallowed
• Treated as a Benefit-in-Kind (BIK) for the director
• Rejected entirely as not meeting the “wholly and exclusively” rule

To protect your claim, HMRC expects:

1. Clear Business Purpose – e.g. “supplier negotiation”, “photoshoot for new product launch”
2. Evidence of Content or Meetings – retain photos, video links, or meeting summaries
3. Itemised Costs – distinguish business from personal (e.g. separate personal hotel nights)

Risk: Mixing Business with Pleasure

One of the most common mistakes we see as accountants is when a director combines a business trip with a holiday — and tries to claim the whole amount.

Example:

A jewellery brand founder flies to Paris for a supplier meeting but adds 3 days sightseeing and brings their partner. If the company pays for:

• The partner’s flight or hotel
• The extended hotel stay
• Meals on personal days

Then only the business portion of the trip is deductible. The rest must either be:

• Reimbursed to the company, or
• Treated as a taxable benefit on the director’s P11D

Rule of thumb: If the trip would have happened without the personal element, and the personal benefit can be clearly separated, then part of the cost is allowable.

What About VAT on Flights and Travel?

Can you reclaim VAT on flights?

In most cases, no. Passenger transport such as flights, trains, buses, and taxis are usually zero-rated or exempt, meaning no VAT was charged — and there’s nothing to reclaim.

Can you reclaim VAT on other travel expenses?

Yes, but only if:

• The cost was incurred by the business
• You have a valid VAT invoice
• The expense is not for personal or entertainment use

Examples of reclaimable VAT include:

• UK hotel accommodation
• Taxi fares within the UK with VAT receipts
• Meals for employees while on business

Note: Overseas hotels and meals usually do not carry UK VAT — and foreign VAT is generally not reclaimable unless using a VAT refund scheme.

How to Record and Claim Business Travel Expenses Properly

Here’s what your business needs to do to ensure your travel claims are compliant:

1. Keep Records of Purpose

Document the reason for travel — include meeting agendas, supplier emails, or marketing briefs.

2. Retain Invoices and Receipts

For all flights, hotels, taxis, and services, obtain invoices in the company’s name.

3. Separate Business and Personal Costs

If the trip includes leisure time, only claim the business-related portion.

4. Use Director Loan Accounts Correctly

If the company pays for a director’s personal expense, it must either be:

• Repaid through the director’s loan account, or
• Declared as a taxable benefit

5. Ensure Correct Accounting Treatment

Expenses should be coded to “Travel and Subsistence” or “Marketing” if clearly linked to promotional activity.

Summary Table: What You Can and Can’t Claim

Common Questions from Business Owners

Can I claim travel if I’m the only director?

Yes, if you’re actively working on the trip and it’s wholly business-related. Just be cautious — HMRC scrutinises sole director travel more closely.

Can I claim expenses for an employee or contractor?

Yes, as long as their travel is necessary for the business and not part of an entertainment event.

What happens if HMRC disallows my claim?

If an expense is disallowed, your company:

• Loses the Corporation Tax deduction
• May face penalties for inaccurate filing
• May need to declare the cost as a Benefit-in-Kind on the director

Final Thoughts: Get Advice Before You Travel

Travel costs can be a legitimate and valuable deduction for your business — but only when handled correctly.

If you’re unsure whether your planned trip qualifies as a business expense, or if you’ve already travelled and need to check what can be claimed, get in touch with Merranti Accounting.

We’ll:

• Review your travel records and purposes
• Ensure expenses are correctly documented
• Advise on VAT and Benefit-in-Kind implications
• Help you stay compliant while maximising tax efficiency

Speak to Merranti Today

We help UK businesses confidently manage their tax and accounting obligations, including tricky areas like travel and director expenses.

Call us on 01342 836 557