5 Summer Tax Tips HMRC Hopes You’ll Overlook

Summer often brings a welcome slowdown for small business owners—but it’s also a prime time to review your tax strategy. These five seasonal tax tips could help you reduce your liabilities and make smarter financial decisions before the next tax year creeps up.

Business Travel and Holiday Expenses

If you’re combining business with leisure this summer, it may be possible to claim tax relief on the business portion of your travel. HMRC allows certain travel costs to be deducted if the primary purpose of the trip is work-related and properly documented.

Eligible business expenses include:

• Travel fares (e.g. flights or trains)
• Accommodation costs for business-related nights
• Meals and incidentals during business travel
• Vehicle hire or mileage for work purposes

Acceptable reasons for business travel:

• Visiting clients or suppliers
• Attending trade events or training
• Researching business locations

Documentation requirements:

• Meeting invitations or event confirmations
• Receipts and travel bookings
• Notes or summaries of meetings

If personal travel is included, only the business-related portion can be claimed. Costs for family members or non-business activities must be excluded.

Hiring Temporary or Seasonal Workers

Bringing in help during the summer—whether students on break or family members assisting with tasks—can be a legitimate business expense if handled correctly.

Deductible staffing costs:

• Wages or salaries
• Employer’s National Insurance Contributions (NICs)
• Pension contributions (where applicable)
• Holiday pay and bonuses
• Training and onboarding expenses

Compliance requirements:

• Register as an employer and run PAYE for employees
• Keep job descriptions, timesheets, and task records
• Obtain invoices and contracts for freelance or casual workers

All work must be genuine and payments must reflect market value for the services provided. HMRC requires evidence that the work was necessary and carried out.

Annual Staff Events: Tax-Free Allowance

Under the Annual Events Exemption, businesses can host annual functions, such as summer parties, without creating tax or NIC liabilities—provided certain criteria are met.

Key conditions:

• The event must be intended as annual in nature
• All employees must be invited
• Total cost must not exceed £150 per attendee (including VAT)

The per-head allowance includes all event-related costs, such as:

• Venue hire
• Catering and entertainment
• Travel or overnight accommodation

Records should include invoices, attendee numbers, and internal notes outlining the event’s nature and eligibility.

Advance Business Spending

If your accounting year-end is approaching, advancing certain purchases before the period closes can reduce taxable profits for the current year.

Typical deductible expenses include:

• Equipment and IT purchases
• Office furniture
• Marketing materials or subscriptions
• Prepaid software licences
• Stock or tools required for operations

Expense types:

• Revenue expenses: Deducted in full in the year incurred (e.g. subscriptions, training)
• Capital expenses: May qualify for the Annual Investment Allowance (AIA), allowing full deduction of up to £1 million annually

To qualify, purchases must be wholly and exclusively for business use. Avoid making unnecessary purchases solely for tax benefits.

Home Office Claims in Summer

If you work from home during the summer—even from a garden setup—you may be eligible to claim a portion of your home costs, assuming your work is legitimate and consistent.

Possible home office expenses:

• Electricity and gas
• Broadband and telephone services
• Council tax and water (proportional)
• Rent or mortgage interest (not capital)
• Property insurance and maintenance (business-use portion)

You can calculate this either using simplified flat-rate methods or by apportioning based on room usage and time spent working.

Summer can be a valuable time for financial planning. Reviewing your travel, staffing, and business spending now can help you optimise tax efficiency before the next return is due.

For tailored advice and to ensure these allowances apply to your circumstances, contact Helpbox. We work exclusively with small businesses and can help you apply these strategies correctly and confidently.