How Much VAT on Business Travel Are You Missing Out On Reclaiming?

Every year, UK businesses collectively lose millions of pounds in unclaimed VAT on travel expenses. Flights, hotels, trains, car hire, even meals — all can include recoverable VAT if you have the right documentation. But in reality, most companies leave significant amounts on the table.

Why? Because travel is often booked in a fragmented, uncontrolled way.

• The Problem: Scattered Bookings and Lost Invoices

When employees book travel through multiple channels — airline websites, hotel apps, or personal cards — VAT reclaim becomes:

• Complicated: Inconsistent invoices from dozens of suppliers.

• Time-consuming: Manual sorting through receipts and statements.

• Frequently overlooked: Finance teams often skip smaller claims because the admin burden outweighs the perceived benefit.

Multiply that across your whole company — and the unreclaimed VAT quickly adds up.

• The Solution: Centralise and Automate

The good news? There’s a straightforward way to fix this.

A managed travel program can ensure you reclaim the VAT you’re entitled to by:

• Centralising all travel bookings and payments
  No more scattered transactions — everything flows through one platform.

• Capturing VAT-compliant invoices for every transaction
  Ensures every airline, hotel, and car hire invoice meets HMRC standards.

• Automating VAT reclaim reporting and submissions
  Save hours of manual admin while maximising eligible claims.

• Maintaining full compliance with HMRC (or your local tax authority)
  Avoid errors, audits, and lost recovery opportunities.

With these systems in place, your finance team can track, validate, and recover VAT efficiently — turning lost revenue into measurable savings.

• It’s Not Just About Savings

Reclaiming VAT isn’t simply about cutting costs. It’s about reclaiming what’s rightfully yours.

A properly managed travel program not only helps you reduce leakage and improve compliance — it also provides:

Real-time spend visibility

Streamlined expense workflows

Confidence that every pound is accounted for

For professional services, investment firms, and other VAT-registered businesses, this is an easy win that directly improves your bottom line.

• Take Control of Your VAT Reclaim

If your firm’s business travel is still booked ad hoc, there’s a high chance you’re missing out on significant VAT recovery.

By centralising your travel program, you’ll:

Simplify expense management

Maximise VAT recovery

Strengthen compliance

And free up your finance team for higher-value work

Ready to find out how much you could be reclaiming?
Get in touch for a free audit of your firm’s travel and VAT recovery potential.

www.vmrtravel.co.uk/contact

Posted on 21 November 2025 by VMR Travel