Foreign Expenses Incurred While Abroad: A Guide for Creatives in the UK

If you’re a singer, artist, influencer, or performer based in the UK, chances are you travel overseas for gigs, collaborations, content creation, or performances. Whether you are heading to another country for a music tour, an influencer event, an art exhibition, or brand partnerships, you may incur business-related expenses abroad.

But how do you track, claim, and account for these foreign expenses when filing your UK tax return? Understanding the tax rules around overseas business expenses will ensure you claim all allowable costs, reduce your taxable income, and avoid any mistakes with HMRC.

Here’s a complete guide to accounting for foreign expenses while overseas.

1. What Counts as a Business Expense Overseas?

Just like in the UK, any expense incurred while working abroad must be “wholly and exclusively” for business purposes to be deductible.

Common allowable foreign expenses include:

• Travel costs – Flights, trains, taxis, or car rental for business trips.

• Accommodation – Hotels, Airbnb stays, or short-term rentals during work trips.

• Food and subsistence – Meals while on business, within reasonable limits.

• Work-related transport – Public transport, fuel costs for hire cars, tolls, and parking.

• Professional services – Payments to overseas photographers, videographers, producers, or assistants.

• Event fees – Conference or festival tickets, venue hire, or exhibition costs.

• Equipment hire – Renting music, video, or photography equipment abroad.

• Internet and phone bills – Business-related calls, roaming charges, or Wi-Fi fees.

  
  

What is not claimable?

• Any personal expenses, such as sightseeing, entertainment, or personal shopping.

• Luxury upgrades, such as business class flights or five-star hotels, unless necessary for business.

• Fines or penalties, such as speeding tickets or visa overstays.

  
  

To avoid issues with HMRC, keep records proving that these expenses are directly linked to your work.

2. How to Track Foreign Expenses Correctly

Overseas spending can get messy, especially if you use multiple currencies or different payment methods. Here’s how to stay organised:

• Keep all receipts and invoices – Digital copies are fine, but they must clearly show the expense, date, and business purpose.

• Track expenses in GBP – Convert foreign currency amounts to British pounds using the exchange rate on the day of the transaction.

• Use a business bank account – If possible, use a dedicated business card for travel expenses to keep records clear.

• Use accounting software – Tools like QuickBooks, FreeAgent, or Xero can track international expenses and apply exchange rates automatically.

• Record cash payments properly – If you pay cash abroad, note the date, reason, and amount in both local currency and GBP.

  
  

If you are unsure about exchange rates, HMRC allows you to use the official exchange rates published by HMRC or the Bank of England.

3. How to Claim Foreign Expenses on Your UK Tax Return

When filing your Self-Assessment tax return, you report foreign business expenses just like any other UK-based expense.

• Step 1: Convert all foreign expenses into GBP using the correct exchange rate.

• Step 2: Add the expenses to the appropriate category in your Self-Assessment tax return under "allowable business expenses."

• Step 3: If VAT was charged on expenses overseas, check whether you can claim it back (more on this below).

If you’re using an accountant, provide them with clear records of all overseas expenses, including receipts, invoices, and exchange rate calculations.

4. What About VAT on Foreign Expenses?

VAT can be tricky when dealing with overseas transactions.

• If you pay VAT abroad – You cannot reclaim foreign VAT on your UK VAT return, but you may be able to apply for a refund in that country.

• If you are VAT-registered in the UK – Your business must still charge UK VAT on sales to UK clients, even if you’re working abroad.

• For EU-related expenses – You may be able to reclaim VAT through the EU VAT Refund Scheme (if applicable).

  
  

For large expenses with VAT paid overseas, consult an accountant to see if a VAT refund claim is possible.

5. Can You Claim Per Diems (Daily Allowances)?

In some cases, HMRC allows businesses to claim a fixed daily allowance instead of individual receipts for meals and subsistence while travelling abroad.

• If you are an employee of your own limited company, you may be able to claim per diems using HMRC's benchmark rates.

• If you are self-employed, HMRC generally requires you to claim actual expenses with receipts rather than per diems.

  
  

Check HMRC’s Worldwide Subsistence Rates to see if this applies to your business.

6. How to Deal With Mixed Business and Personal Travel

Many creatives combine business and leisure travel, which can make it difficult to separate personal and work-related expenses.

Example:

• You fly to Los Angeles for a music collaboration but stay an extra five days for a holiday.

• Only the business portion of the trip (flights, workdays, meetings, and event fees) is deductible.

• Any personal meals, sightseeing, or hotel costs for holiday days cannot be claimed.

  
  

To avoid HMRC questioning your claims:

• Keep clear records of business-related activities (emails, contracts, gig schedules).

• Separate business and personal expenses by using different payment methods or logging personal costs separately.

  
  

7. Can You Claim Travel Expenses for Others?

If you travel with a band member, assistant, or photographer, their travel expenses can also be claimed as business expenses—but only if they are working for you and the trip is business-related.

However, travel costs for family or friends who accompany you but are not working cannot be deducted.

8. What If You Earn Money Overseas?

If you perform, sell artwork, or generate sponsorship income abroad, you may need to:

• Declare foreign income on your UK tax return.

• Check if you need to pay tax in the country where you earned money.

• Apply for a tax credit relief to avoid being taxed twice.

  
  

The UK has double taxation agreements with many countries, meaning you may not have to pay tax twice. Speak to an accountant if you regularly earn income abroad.

Final Thoughts: Stay Organised and Claim What You’re Owed

If you travel overseas for gigs, content creation, exhibitions, or sponsorships, keeping proper records of foreign expenses will help you reduce your tax bill and stay compliant with HMRC.

• Only claim business-related expenses—personal costs are not deductible.

• Track foreign currency transactions properly and convert them to GBP.

• Check VAT rules for international expenses and refunds.

• Separate business and personal travel costs to avoid HMRC scrutiny.

• Declare foreign income and check tax treaties if you earn money abroad.

  
  

By staying organised, you can claim everything you’re entitled to, keep more of your income, and avoid unnecessary tax headaches.

If you're ever in need of help with setting up a limited company, sorting out your bookkeeping, accounting and tax submissions or would like some personal financial coaching, drop us a line by clicking on the 'Contact Us' button at the top of the page and we'll be happy to help.

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