Last updated: 14 October 2026
Can you deduct some holiday costs from your business profits?
Only the part that’s genuinely for business. If a trip has a mixed purpose, such as attending a trade fair and then staying on for a holiday, you can usually claim the costs that relate only to the business days, such as the conference fee and business-day accommodation. The travel itself, like flights, is only deductible if the main purpose of the trip was business. If the trip is mainly a holiday with a little business, none of the travel cost is allowable.
The “wholly and exclusively” test
Business travel costs must be incurred wholly and exclusively for the business. HMRC looks at the purpose of the trip:
| Trip | Flights | Accommodation and meals | Conference fees |
| Mainly business, with a few personal days | Yes | Business days only | Yes |
| Mainly holiday, with one business meeting | No | Business days only, if separate | Yes |
| Family accompanies you | Your costs only | Your share | Yes |
| Business trip extended by a weekend because flights are cheaper | Usually yes | Usually yes, if it saves money | Yes |
Example
Graham, a self-employed photographer, flies to Barcelona for a 4-day photography trade fair in 2026. He stays 3 extra days for a holiday, and his partner joins him. He can claim:
- His return flight (£220), as the main purpose was business
- 4 nights’ hotel for himself, not the 3 extra nights
- The trade fair entry fee and business meals
He can’t claim his partner’s flight or costs, or the holiday days.
Limited companies
If your company pays for a trip that is partly a holiday, the private element is a benefit in kind for you as a director, taxed on your income and with Class 1A NIC for the company. If the trip is wholly for business, there’s no benefit.
Overseas conferences
HMRC often looks closely at conferences in holiday destinations. Keep the agenda, evidence of attendance and notes on business contacts made.
Staff trips
Annual staff parties and events open to all employees are exempt up to £150 a head a year. A holiday for staff as a reward is a taxable benefit, unless included in a PAYE Settlement Agreement.
Records to keep
- Booking confirmations for each element
- Conference or meeting agendas
- Receipts for meals and travel, marked business or private
- A short note explaining the purpose of the trip
VAT
VAT on hotel and conference costs abroad usually can’t be reclaimed on your UK VAT return, but some countries allow a refund. UK business trips follow normal rules.
Common mistakes
- Claiming the whole trip because one meeting took place
- Including a partner’s flights or meals
- Not keeping an agenda or evidence of business activity
- Claiming accommodation for holiday days at the end of a business trip
Frequently asked questions
Can I claim if I take my family?
Only your own business costs.
What if I extend a trip to save on flights?
HMRC may accept it if the main purpose remains business.
Can I claim a holiday to “recharge”?
No.
Can I combine a client visit with a holiday?
Only the costs specific to the business part.
Related: business travel for sole directors, claiming a trip against rental income and taxi costs for companies.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with business travel expenses. See our small business accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
