International travel for employees has grown steadily in recent years. After the shift to remote working during the pandemic, face to face meetings are now seen as more engaging than the online alternative. At the same time there has been a rise in the number of employees who are based outside the UK but occasionally travel to the UK for work-related activities.

This would be easy to manage if determining whether a person can be reimbursed tax-free for their travel (and related) costs was simple. But currently, it is not. This short guide will help you determine whether your employee travel expenses are taxable or not.

Is the employee travelling to a temporary workplace?

An employee can claim tax relief for travel, accommodation and certain subsistence when attending a temporary workplace.

A workplace is ‘temporary’ if:

• The employee attends works there for a limited period of time or for a temporary purpose.
• You do not expect your employee to attend the workplace for longer than 24 months.
• The employee does not spend more than 40% of their working time at that workplace for over 24 months.

The workplace is considered ‘permanent’ if these conditions are not met. And importantly, you won’t be entitled to relief for ordinary commuting.

In order for a workplace to be temporary, there must also be a permanent workplace. So, if a person has four independent employments at separate locations, they do not have a temporary workplace even though they only spend 25% of their time at each location.

The temporary workplace rules apply equally to UK-based employees as well as international employees. The rules for business travel differ between countries so an employee travelling to a temporary workplace abroad may find that their travel expenses are taxable in that country.

Overseas employees travelling to a permanent workplace in the UK

Relief on ordinary commuting to the UK is not available. But there may be other reliefs available for some of the travel costs.

From 6 April 2025, employees only qualify for home leave tax relief on employer paid travel expenses (not including accommodation) between the UK and their home country if they are either:

• Non UK tax resident.
• Qualifying new residents (generally those who have been non UK tax resident for the previous 10 UK tax years before arriving).

If someone has been UK resident in any of those 10 years, they will not meet the definition of a qualifying new resident and cannot claim relief. Qualifying new residents can claim the relief for the first four tax years.

A person may still be treated as a qualifying new resident if they were eligible for Overseas Workday Relief before 2025/26 and are still within their first three UK tax years of residence. If this is the case, they can continue to claim home leave relief despite not meeting the 10 year non residence test.

UK resident employees working overseas

If a UK resident employee is working at a permanent workplace overseas, you can claim relief for:

• Trips at the start or end of an overseas assignment.
• Travel between employments performed abroad.
• Overseas accommodation and subsistence (if the employment is wholly performed overseas).

Interim travel to and from the UK.

But if the employer is a foreign employer, the employee can’t claim these reliefs if they are a qualifying new resident.

Non-resident directors

A non-resident director of a UK company who attends board meetings in the UK is deemed to be working at a permanent workplace.

That means that any reimbursement of travel and accommodation costs will be taxable. If the director is non-resident, they may be able to claim relief for the travel expenses under the home leave rules. This will not include accommodation costs.

How RSM can support you

We can help your business:

• Assess eligibility for tax relief on reimbursed travel expenses.
• Navigate temporary workplace and relocation relief alternatives.
• Correct or update PAYE, NIC and benefits reporting.
• Prepare communications for mobile employees and HR teams.

Employers with internationally mobile staff need to have a clear idea of how travel expenses are reimbursed and reported. Our global mobility specialists can help you remain compliant with UK tax rules, contact Joanne Webber or your usual contact.

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