Severn Accounting
Tax & Accounting

Incidental overnight expenses – a little known tax break

By Ali Jaw ·

If you’re self-employed or a director who regularly travels for business, you might be missing out on a legitimate tax deduction that HMRC explicitly permits. Incidental overnight expenses—often called “incidental expenses”—are a little-known allowance that can add up to meaningful savings over the year. Many UK business owners simply don’t know they can claim them, whilst others worry they’ll trigger a tax investigation. The reality is far more straightforward. Let’s walk through what HMRC allows, how to claim them properly, and why you shouldn’t leave money on the table.

What counts as incidental overnight expenses?

HMRC defines incidental expenses as costs that arise as a direct result of staying away from home overnight for business purposes. These are the small, ancillary costs that wouldn’t normally be claimed as part of your main travel or accommodation expenses.

Common examples include:

  • Laundry or dry cleaning of business clothes
  • Telephone calls home or business calls from your hotel room
  • Tips to porters, cleaners, or room service staff
  • Newspapers or periodicals purchased for reading during downtime
  • Toiletries or personal items you’ve had to purchase because you forgot them

The key phrase here is “incidental”—these aren’t your hotel bill or meals, which are dealt with under different rules. They’re the genuine extras that crop up when you’re away.

The HMRC allowance and how to claim it

Here’s the good news: HMRC provides a fixed allowance for incidental expenses, and you don’t need to keep receipts for every item. For the 2024/25 tax year, the allowance is:

  • £5 per night if you’re staying away in the UK
  • £10 per night if you’re staying away outside the UK

This means if you travel to London for three nights of business meetings, you can claim £15 in incidental expenses without providing detailed evidence. The allowance is generous precisely because HMRC recognises that trying to itemise every small cost would be administratively burdensome for both taxpayers and the tax authority.

To claim, you simply need to record:

  • The date and destination of the trip
  • The number of nights you stayed away
  • Confirmation that the trip was for business purposes

You don’t need receipts for individual items unless HMRC specifically asks for them (which is rare if you’re within the allowance). This makes the claim straightforward to substantiate if your records are ever reviewed.

When overnight expenses are not allowed

It’s worth being clear about what doesn’t qualify. HMRC won’t allow incidental expense claims for:

  • Overnight stays at your own home or a property you own
  • Days when you’re working from your office and returning home the same evening
  • Leisure trips, even if they involve some business activity
  • Trips where your accommodation is provided free by a friend or family member

The expense must arise from a genuine business overnight absence. Equally, if you’ve already claimed the cost of an item elsewhere—for example, claiming laundry as part of your clothing allowance—you can’t claim the same expense under the incidental allowance.

Practical record-keeping

To make this easy, keep a simple spreadsheet or notebook when you travel. Record the destination, dates, and number of nights. Many accountants recommend flagging business trips in your calendar or expense app so you can batch-claim at the year end, rather than trying to remember trips several months later.

If you travel regularly for work—say, visiting clients or attending conferences—these small claims can genuinely stack up. Someone visiting client sites two days a week across 48 weeks of the year could claim £240 annually (48 weeks × 2 nights × £5), simply by keeping basic records.

The bottom line

Incidental overnight expenses are a legitimate, HMRC-approved tax break that requires minimal documentation. Whether you’re a sole trader, a partnership, or a company director, you can claim them against business profits. It’s not a loophole or aggressive tax planning—it’s a standard allowance HMRC has designed specifically to avoid unnecessary paperwork.

If you’re already claiming them, brilliant. If you’re not, it might be worth reviewing your previous year’s travel to see whether you could claim on a prior-year basis (HMRC allows corrections where an allowance has been overlooked).

For tailored advice on incidental expenses, travel allowances, or your broader tax position, contact Severn Accounting—we’re here to help.