For many organisations, business travel is unavoidable. Teams travel to meet clients, manage operations across locations and represent their companies at events.

While arranging the trip may be straightforward, managing the expenses is often more complex. Which journeys qualify as business travel? What can be reimbursed tax-free? When does a regular commute become a business expense?

Understanding these distinctions is essential for both employers and individuals. This guide explains how business travel expenses are typically treated, what qualifies for reimbursement and how organisations can approach travel costs in a structured and compliant way. Although regulations differ by country, the core principles remain consistent.

What are business travel expenses?

Business travel expenses include all work-related costs incurred during a business trip. These may include transport, accommodation, meals, congestion charges, tolls, parking fees and mileage if a personal vehicle is used for work purposes.

As with other business expenses, companies can usually claim tax relief on travel costs that are incurred solely for business reasons. However, not all expenses are recognised by tax authorities as valid business costs. The classification of a journey plays an important role in determining whether reimbursement can be made tax-free.

What counts as business travel?

A common area of confusion is the difference between business travel and personal travel. Even during a work trip, some expenses may still be considered personal and therefore not eligible for reimbursement.

In general, business travel includes:

Journeys undertaken to perform work duties, where travel is necessary to carry out responsibilities
Travel to a location that must be attended to perform those duties, such as a temporary workplace

By contrast, travelling from home to a regular workplace is usually treated as commuting. In tax terms, this is known as an ordinary commute. An ordinary commute is the normal journey between home and a regular place of work and is treated as a personal expense rather than a business expense.

Parking fines, speeding tickets and other penalties are also not considered business travel expenses.

Let us now look at how these rules apply to self-employed individuals and employees.

Travel expenses for the self-employed

For self-employed professionals, the first step is identifying the regular place of work. This is the location where business activities are normally carried out and, as explained above, it determines what is considered an ordinary commute.

If a self-employed person rents an office or workspace, that location is usually their regular place of work. If they mainly work from home and do not have a separate office, their home may be treated as their regular place of work, depending on local rules.

As outlined earlier, travel between home and a regular place of work is treated as an ordinary commute and cannot usually be claimed as a business expense.

For example, consider a self-employed handyman who rents a small office but frequently travels to various client locations. The journey from home to the rented office is commuting and is not deductible. However, travel from the office to client sites is undertaken to fulfil business duties and can typically be claimed. If the handyman works primarily from home and travels directly from home to clients, those journeys would usually qualify as business travel because the home functions as the regular place of work.

Next, let us look at business travel expenses for employees.

Business travel expenses For employees

Employees are generally not expected to cover business travel costs themselves. Employers typically reimburse expenses incurred during work-related trips.

Whether travel qualifies as business travel often depends on the distinction between a permanent workplace and a temporary workplace.

A Logistics Manager who normally works at the company’s office but visits a warehouse once a month to review operations provides a useful example. The office is the permanent workplace, while the warehouse is a temporary workplace. Each time the manager travels to the warehouse to carry out those duties, the journey is generally treated as business travel.

To understand this properly, it is important to clarify what permanent and temporary workplaces mean.

Permanent vs temporary workplace

A permanent workplace is where an employee works regularly and on an ongoing basis. Travel between home and a permanent workplace is considered an ordinary commute and is not usually allowable as a business travel expense.

A temporary workplace is a location an employee attends to carry out duties for a limited period or specific purpose. Travel to a temporary workplace is generally treated as business travel.

In many countries, the length and nature of an assignment are taken into account when determining whether a workplace is temporary or permanent. The exact criteria vary by jurisdiction.

If an employee is assigned to the same location on a long-term basis and works there regularly, that location may become the permanent workplace. Travel to that site would then fall under the ordinary commute rule described above.

Employee travel expenses

The same principles apply to employees as to the self-employed. As already established, travel to and from a permanent workplace is treated as an ordinary commute and is not an allowable business expense. However, travel undertaken purely for business purposes to locations other than the permanent workplace is generally permitted.

Eligible costs typically include:

Public transport
Taxi and ride-hailing services
Mileage when using a personal vehicle for business purposes
Parking fees and tolls related to business travel

For example, if a Sales Manager travels from the office to attend an expo in another city, the travel costs for that day would usually qualify because the journey is required for work and takes place away from the permanent workplace.

Meals

The general rules for claiming meal expenses are the same for both self-employed individuals and employees.

Routine daily meals, such as lunch purchased during a normal working day, are generally considered personal expenses and are not claimable. However, meal costs incurred during occasional business travel may qualify.

Returning to the handyman example, if travelling between local client sites forms part of the regular working pattern, lunch would usually not be deductible, even though travel costs may be allowed. In contrast, a Sales Manager travelling to another city to attend an expo can typically claim meal expenses for that trip because the travel takes place outside the normal work routine and requires being away from the regular workplace.

Expenses must always be reasonable.

Overnight stay

If a business trip requires an overnight stay, the cost of accommodation is usually allowable. Reasonable expenses for evening meals and breakfast may also qualify.

In addition, employees may receive reimbursement for minor incidental expenses during overnight trips. Incidental expenses typically refer to small personal costs that arise because the employee is staying away from their regular place of work. These may include private phone calls, laundry during longer stays or minor service charges linked to the accommodation.

The specific rules and limits for incidental expenses vary by jurisdiction. In some countries, fixed daily allowances apply. In others, actual costs must be reimbursed.

As with all travel expenses, costs must be necessary for business purposes and reasonable in amount.

Key points for employers

Employers must keep accurate records of expenses and benefits provided to employees.

Records should generally include:

The date and details of each expense
The purpose of the journey
The amount reimbursed
Supporting documentation

Retention periods vary by country, but tax authorities may request evidence showing that expenses were properly recorded and reported.

Beyond compliance, many organisations also review how business travel is planned and managed to ensure spending remains proportionate and aligned with company policy. If you are considering the broader picture of travel budgeting and cost control, you may find our guide on how to reduce business travel expenses helpful, as it outlines practical strategies for managing travel spend more effectively.

Travel cost reimbursement using scale rates or "per diem"

Some employers reimburse travel expenses using fixed allowances, often referred to as scale rates or per diem payments.

Instead of reimbursing the exact amount shown on each receipt, the employer pays a fixed daily amount to cover typical costs such as meals and minor travel-related expenses. The employee does not need to submit detailed receipts for every small cost, provided the allowance is used for genuine business travel.

For example, when an employee travels to another city for a conference, the employer may provide a daily allowance to cover meals. Rather than collecting separate receipts for breakfast, lunch and dinner, the employee receives a set amount intended to cover those costs.

In some countries, official benchmark rates are published for travel allowances. In others, employers must reimburse actual costs. The approach depends on local regulations.

Per diem systems can simplify administration for both employers and employees. They reduce paperwork, speed up expense processing and provide predictable budgeting for business trips. However, payments must still relate to genuine business travel and comply with local rules.

If reimbursement exceeds permitted limits, or if payments are not clearly linked to business travel, the excess may be treated as taxable income.

When reimbursement becomes taxable

Business travel expenses can usually be reimbursed without additional tax if they relate directly to business activities and meet local requirements.

However, reimbursement may become taxable if:

The expense is not clearly business-related
The amount exceeds allowed limits
Proper documentation is not maintained

In such cases, the payment may be treated as part of the employee’s income and subject to tax and social contributions.

Ensure flawless invoicing for your work rides

Keeping records of business travel expenses can be challenging when trips involve multiple ride-hailing journeys.

Employees may need to collect and store receipts throughout the trip and submit them for reimbursement. When travel spans several days, tracking each invoice can become time-consuming.

With Bolt Business, organisations can manage employee rides, budgets and invoicing in one place. Ride data can be integrated with expense management systems, helping ensure that records are accurate and easy to access.

Bolt Business provides secure and cost-effective business rides in hundreds of cities worldwide.

A complete guide to business travel expenses (with examples)

Affordable work rides, without the paperwork

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