Flying first class isn’t just about champagne and extra legroom — for some directors, it’s part of doing business. But can your company really foot the bill without falling foul of HMRC?
In this post, we’ll break down when first-class travel counts as a legitimate business expense, when it doesn’t, and how to make sure your books (and conscience) stay clean.
If you are looking for help with tax, self employed tax returns or anything accounting, please get in touch with Clayton Stirling today.
What HMRC Actually Says About Travel Expenses
When it comes to claiming travel costs through your limited company, HMRC’s golden rule is that the expense must be “wholly, exclusively and necessarily incurred in the performance of your duties.”
In simple terms, that means the trip needs to be entirely for business purposes — not partly business and partly pleasure. If there’s a personal element to the travel, you can only claim the business portion, and you’ll need to prove how that was calculated. Read more about this from HMRC’s Travel Expenses and benefits: travel and subsistence
Breaking It Down:
- Wholly: The trip can’t have a dual purpose. If you fly to New York for a conference but stay an extra week for sightseeing, the additional week’s costs are personal, not business.
- Exclusively: The expense must relate directly to your work. A meeting with a client, a trade show, or visiting a supplier would qualify — but taking your partner along for company wouldn’t.
- Necessarily: It should be something that you genuinely have to do to carry out your job — not just something you fancy doing.
If HMRC believes the journey was motivated even partly by personal enjoyment, they can disallow the claim or classify it as a Benefit in Kind (BIK), meaning additional tax for you and National Insurance for your company. If you are unsure of what counts as a Benefit in Kind, get in touch with Clayton Stirling today here.
What Counts as a Business Trip
HMRC generally accepts the following as legitimate business travel:
- Visiting clients or potential clients
- Attending conferences, trade fairs, or training directly related to your business
- Travelling between different business sites or locations
- Overseas trips for meetings, supplier visits, or expansion purposes
You can claim flights, train tickets, taxis, hotels, meals, and even travel insurance, provided you can demonstrate that every expense is linked to a genuine business purpose.
What Doesn’t Count
HMRC won’t allow:
- The cost of ordinary commuting (from home to your regular workplace)
- Holiday extensions attached to a business trip
- Family or partner travel costs (unless they are also employees and their presence is genuinely required)
- Lavish upgrades that can’t be justified as necessary for business performance
Example:
If your business is based in Kent and you attend a trade fair in Manchester, the train ticket and hotel are allowable. But if you turn it into a weekend away and book spa treatments, those personal extras can’t be claimed.
Record Keeping is Everything
To satisfy HMRC, you need to be able to show evidence that supports your claim:
- Save invoices, boarding passes, meeting agendas, and receipts
- Keep emails or calendars proving the business reason for travel
- Use your accounting software to categorise each expense clearly (e.g., “Business Travel – Client Meeting”)
Even if you fly first class, documentation can make all the difference. HMRC isn’t targeting comfort — they’re targeting justification.
If you are a freelancer and unsure what travel expenses you can claim read our post, Freelancer’s Guide To Claiming Travel Expenses In Kent.
How to Record the Expense Properly
Even if your business trip is 100% legitimate, how you record and present the expense can make the difference between smooth sailing and an HMRC headache. The key is clarity, evidence, and separation, showing that every pound spent can be traced to a genuine business purpose.
Book Through the Company Account
Whenever possible, book flights, accommodation, and transfers directly through the company rather than using personal cards.
This ensures:
- The invoice is in the company’s name (which HMRC prefers).
- Payments are visible in your business bank account.
- There’s no confusion about whether the company or director paid.
If you do use your personal card for convenience, make sure to submit a clear expense claim showing the business reason and attach the full receipt.
Tip: Keep your flight booking confirmation, ticket receipt, and travel itinerary together in a single digital folder or attach them to your expense record in Xero, QuickBooks, or your preferred accounting software.
Categorise the Expense Clearly
When entering travel costs into your bookkeeping system, label them properly.
Suggested categories include:
- Director Travel – Business
- Client Meeting Travel
- Overseas Business Trip
Avoid vague labels like “Miscellaneous” or “Other,” as they raise red flags during audits.
If part of your trip was personal, record only the business proportion as a company expense. For example:
- Flight: £1,200 return, but only the outbound journey (£600) was for a business meeting.
- Claim £600 under “Director Travel – Business,” not the full amount.
Separate Personal and Business Costs
If you mix business with leisure — say you stay the weekend after a Friday client meeting — make sure to split costs proportionately:
- The business days (flights, hotel nights, meals) are claimable.
- The personal days are not.
- Keep a log or itinerary showing the purpose of each day, so it’s crystal clear which costs relate to work.
Example:
You fly to New York for a two-day investor meeting, then extend your stay for five days of sightseeing.
HMRC expects you to claim only two-sevenths of the total cost (2 business days out of 7 total).
Keep Digital Receipts and Evidence
HMRC accepts digital copies of receipts — so scan or photograph everything.
Keep:
- Flight confirmations and boarding passes
- Hotel invoices (showing check-in/out dates)
- Agendas, meeting notes, or emails confirming your appointments
- Taxi, train, or transfer receipts
If you’re ever audited, being able to produce a neat digital trail can save you hours of stress — and money in penalties.
Add Notes Explaining the Purpose
When entering the expense, always include a short note describing why the trip was necessary.
For example:
“Client pitch meeting – Dubai, 3–5 May 2025”
“Annual trade fair attendance – Berlin, stand setup & client visits”
These quick notes demonstrate intention and can prove business purpose years later when details fade or records are reviewed.
Use an Accountant to Double-Check
Before filing your year-end accounts, your accountant should review your travel claims to ensure they:
- Match HMRC’s definition of “wholly and exclusively business-related”
- Are categorised correctly
- Include all supporting evidence
At Clayton Stirling & Co, we help our clients in Kent make sure legitimate business expenses — from mileage to first-class flights — are recorded cleanly, so they withstand HMRC scrutiny and remain fully tax-efficient.
The Benefit-in-Kind (BIK) Trap
If HMRC decides your trip had a personal element, the cost can be treated as a Benefit in Kind (BIK), meaning:
- The company pays National Insurance on it
- You, personally, may owe income tax on the value of the benefit
Example: If a director flies first class to Dubai for a client meeting but stays an extra week on holiday, HMRC could class half the flight cost as a personal benefit.
When It Makes Sense for the Business
Sometimes, luxury travel can be a strategic choice:
- Maintaining energy and professionalism for back-to-back meetings
- Networking in premium lounges (yes, it counts!)
- Hosting or travelling with VIP clients
Just make sure it’s supported by solid documentation, the decision should make commercial sense, not just personal sense.
How Your Accountant Can Help You Stay Compliant
An accountant can help you:
- Identify what’s claimable and what’s not
- Allocate partial costs correctly
- Keep digital records for HMRC audits
- Avoid unexpected personal tax bills
- At Clayton Stirling & Co, we help directors and business owners across Kent make the most of legitimate business expenses — without crossing the line.
Conclusion
Flying first class isn’t off-limits, but it’s not a free pass either.
As long as your trip serves a clear business purpose, the cost is reasonable, and your paperwork is in order, you can enjoy the perks of premium travel without any unwanted tax turbulence.
If you’re unsure about how to classify your travel expenses, speak to Clayton Stirling & Co, we’ll help you keep things efficient, compliant, and stress-free.
