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Tax relief on accommodation when you work away from home

Most people who stay away for work can have the cost covered tax-free or claim relief on it, but the rules are different for employees and the self-employed. Here is what GOV.UK and HMRC's own guidance say.

Last updated 11 November 2026

This is general information, not tax advice. Your own position depends on your contract and how you are paid. If in doubt, ask HMRC or a qualified accountant.

If you are an employee

What you can claim

GOV.UK's guidance on job expenses says employees may be able to claim tax relief for travel and overnight costs, including hotel accommodation if you have to stay overnight, and food and drink. Public transport, congestion charges, tolls and parking are also listed.

The same page is clear on one limit: you cannot claim for travelling to and from work, unless you are travelling to a temporary place of work.

What counts as a temporary workplace

The Low Incomes Tax Reform Group (LITRG) explains that a temporary workplace is somewhere you attend irregularly or for a limited period. Its example is someone normally based in Birmingham who is required to work at a store in Leicester for a year: the Leicester store is a temporary workplace.

The 24-month rule and the 40% test

LITRG explains that a workplace is not temporary if you go there for a period of continuous work lasting more than 24 months. HMRC only look at the 24-month rule if you spend 40% or more of your working time at that place. If you spend less than 40% of your time there, the 24-month rule does not need to be considered.

In practice, that means a long contract can stop qualifying. If you are told at the start that a job will run for more than two years, relief on travel and accommodation for that site is unlikely to apply. If a short job is extended and is then expected to run past 24 months, check how that affects your claim from that point on.

If your employer pays

LITRG notes there is no legal requirement for an employer to pay or reimburse travel costs, but many do. Where an employer reimburses costs that you could have claimed relief on, the payment is tax-free and you do not need to make a claim. Employers can also pay a small tax-free amount for incidental expenses for each night you stay away on business; LITRG gives this as £5 a night in the UK.

Making a claim

GOV.UK says you can claim for the current tax year and the four previous tax years, and that claims for hotel and meal costs need receipts showing the date and the name of the hotel or restaurant. If you fill in a Self Assessment tax return, you claim through the return.

Agency, umbrella and IR35 workers

Special rules can restrict travel and subsistence relief for people who work through employment agencies, umbrella companies or personal service companies within IR35. LITRG has separate guidance for agency and umbrella workers. If this applies to you, read that guidance or take advice before assuming the cost is claimable.

If you are self-employed

HMRC's Business Income Manual (BIM47705) says that where a business trip by a trader means one or more nights away from home, the hotel accommodation and reasonable costs of overnight subsistence are deductible. Meals taken as part of an overnight stay are allowable, whether or not they are on the same bill.

The same guidance sets limits:

• Accommodation and subsistence at the base of your trade are not allowed, even if your contract requires you to stay there.
• Food and drink on day trips without an overnight stay are only allowed in narrower cases, such as when the trade is itinerant or the trip is outside your normal pattern of travel.

For a self-employed builder or electrician working a job away from home and returning home at weekends, the overnight accommodation is usually the clearer part of the claim. Keep invoices that show the dates and address.

Good habits that make claims easier

• Get an invoice or receipt for every stay, with the property name or address and the dates.
• Keep a simple log of where you worked each day and for how long you expect the job to last.
• Keep accommodation costs separate from personal spending on the same card if you can.
• If a job is extended, note the date you were told. It matters for the 24-month rule.

Knowing what can be claimed helps when you compare accommodation costs. For what to ask before paying, see the crew booking checklist.

Spotted a mistake or have a question? Get in touch.