Claiming expenses on work-related trips

When travelling for business or paying for employee travel there are many daily expenses that can be claimed.

Generally, you can claim for flights, taxis (or mileage if you use your own car), accommodation, meals and snacks when you are away from home on business travel.

For work-related meetings, conferences or training courses that require an overnight stay, employers can claim the cost of accommodation.

If an employee is working away from home for an extended period, you can claim for accommodation or any accommodation allowance paid providing it is for a period of no more than two years (or three years for capital projects).

The cost of purchasing a meal while travelling on business is 100 per cent deductible for employers. However, you can only deduct 50 per cent of the cost of food and drink if either:
– The trip is mainly for the purpose of enjoying entertainment, i.e., a team bonding trip.
– A celebration where you won’t be working, i.e., a reception, or a staff Christmas party.
– The trip is mainly for entertainment, i.e., a team bonding trip.

If refreshments are usually provided at work, an employer or employee can claim for snacks and refreshments.

The cost of entertainment can be claimed if its purpose is to build up business contacts, keep employees happy or promote goods and services, i.e., offering food to entice customers to a stall at an expo.

Entertainment expenses can be either 50 or 100 per cent claimable. Work-related entertainment expenses incurred while traveling overseas are 100 per cent deductible.

Posted on 21 December '17 by , under tax.