Can I Claim Business Travel Accommodation as a Business Expense?
Yes - accommodation for business travel away from your normal workplace is fully deductible.
What HMRC Says
Overnight accommodation costs when travelling for business are allowable expenses.
When You Can Claim
- Hotels during business trips
- Airbnb for business travel
- Conference accommodation
- Overnight stays for early meetings
When You Cannot Claim
- Accommodation near your normal workplace
- Personal holiday accommodation
- Excessive luxury accommodation
Understanding Business Travel Accommodation Expenses
Business travel accommodation is a fully deductible expense for your limited company, provided the stay is necessitated by business travel away from your normal place of work. The underlying principle is that when your business requires you to be somewhere overnight that is not your usual workplace, the reasonable cost of accommodation is an allowable business expense. This applies equally to hotels, serviced apartments, Airbnbs, and any other reasonable form of accommodation.
The critical distinction HMRC makes is between travel to a temporary workplace and travel to your permanent workplace. If you normally work from home in Manchester and travel to a client's office in London for a two-day engagement, the hotel in London is deductible. If you rent an office in London and commute there daily, a hotel near that office because you want to avoid the commute is not deductible — that is personal choice, not business necessity.
There is no fixed HMRC limit on how much you can spend on business accommodation, but the cost must be reasonable and proportionate to the business purpose. A £150-per-night business hotel in central London for a client meeting is reasonable. A £600-per-night luxury suite for the same trip would likely face scrutiny if it cannot be justified. The test is what a reasonable businessperson would spend in the circumstances. Many companies set internal policies (for example, up to £150 per night in London, £100 elsewhere) to demonstrate reasonableness.
For VAT-registered companies, the VAT on UK hotel accommodation can be reclaimed. Hotels charge VAT at 20% on room rates, and this should appear on your invoice. Note that Airbnb hosts may or may not be VAT-registered — if they are not, there is no VAT to reclaim. Business accommodation in the EU and beyond has different VAT rules; in most cases you cannot reclaim foreign VAT on hotel stays, though some countries have reciprocal arrangements.
Keep detailed records of every business stay: the invoice or receipt, the dates, the business purpose of the trip, and who or what you were visiting. If HMRC queries the expense, you need to demonstrate that the overnight stay was necessary for business, not a matter of personal convenience.
Real-World Examples
Client project requiring overnight stay
A consultant based in Birmingham travels to a client's London office for a three-day project. She books a hotel at £140 per night, totalling £420. The full amount is deductible, and she reclaims £84 in VAT. Her subsistence (meals during the trip) is also claimable.
Conference attendance
A software company director attends a two-day industry conference in Edinburgh. He books an Airbnb for two nights at £95 per night. The £190 total is deductible as business travel accommodation. Since the Airbnb host is not VAT-registered, there is no VAT to reclaim.
Extended stay for a long project
A contractor working on a six-month project in a different city books a serviced apartment at £1,200 per month. For the first 24 months at a temporary workplace, the accommodation is deductible. If the engagement extends beyond 24 months, it may become a permanent workplace, and the accommodation deduction could be challenged.
Early morning meeting avoiding travel
A director has an 8am meeting in London that would require leaving home at 5am. She books a hotel the night before at £165. This is deductible because the overnight stay was necessary to attend the business meeting at a reasonable hour, and the meeting location is a temporary workplace.
Common Mistakes to Avoid
- Booking excessively expensive accommodation that HMRC could argue is disproportionate to the business need — stick to reasonable, justifiable rates
- Claiming accommodation near your permanent workplace because of early starts or late finishes — this is generally personal convenience, not business necessity
- Forgetting the 24-month rule for temporary workplaces — if you work at the same client site for more than 24 months, it becomes your permanent workplace and accommodation is no longer deductible
- Not keeping the hotel invoice or booking confirmation as evidence, especially for Airbnb stays where the receipt may only be available digitally — download and save it with your expense records
Frequently Asked Questions
Can I claim a hotel when travelling for business?
Yes, hotel costs for business travel away from your normal workplace are fully deductible. The stay must be necessary for business purposes — attending client meetings, conferences, or working at a temporary location. Keep the hotel invoice and note the business purpose of the trip.
Can I claim Airbnb for business travel?
Yes, Airbnb accommodation for business travel is deductible in the same way as hotel stays. The type of accommodation does not matter — what matters is that the stay is for legitimate business purposes. Note that Airbnb hosts may not provide VAT invoices, so you may not be able to reclaim VAT.
Is there a maximum amount I can claim for a business hotel?
HMRC does not set a specific maximum, but the cost must be reasonable for the circumstances. A mid-range business hotel is fine. Luxury suites or five-star upgrades may be questioned. Many companies set internal policies to demonstrate they spend proportionately.
Can I extend a business trip with personal days and still claim the hotel?
You can only claim the accommodation for the nights that are genuinely required for business. If you stay for three business nights and add a personal weekend, only the three business nights are deductible. You must split the costs clearly.
Can my company pay for my spouse's hotel room on a business trip?
No. Your spouse's accommodation is a personal cost, not a business expense. If you share a room, you can only claim what a single room would have cost. The additional cost for a double or extra guest is not deductible and would be a Benefit in Kind if the company pays.
Source: HMRC Employment Income Manual EIM31815 - EIM31835 (Travel expenses - overnight accommodation) and BIM47700 (Travel and subsistence)
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