With a little planning, next time you shoot off on holidays you could also save on your tax.
Business travel involves being away from home for at least one night for business purposes. Business travel is in contrast with other types of private travel such as for leisure purposes or regularly commuting between one’s home and workplace. Reasons for business trips include visiting customers or suppliers, meetings at other company locations, professional development, attending seminars, networking, etc.
Business travel days include:
- Travel days.
- Weekend days which are between two business days.
- Days where more than 50% of the day was for business activities.
Strategies to increase travel deductions and add more fun :
- Hire your spouse! If they are involved in the business, and there is a legitimate business reason for them being on a business trip, then their expenses will also be deductible.
- Attend seminars and conferences interstate and overseas.
- Take your business car for family travel. A business trip that involves taking along family members in the vehicle will still be a business trip, and the motor vehicle expenses 100% deductible.
- When staying with friends on business trips, pay them an accommodation fee or give them a gift (both options will be deductible to you).
- Visit potential clients and business associates to improve your skills, get referrals, and experience new places at the same time.
As always, make sure to keep those receipts!
Call us on 1300 TAX SHOP to discuss!
Stephen is the CEO of Accountants Direct and is a Professional Director, ASIC Agent, Startup Advisor & Investor & Capital Raising Specialist.
Contact Stephen or his team if you have any questions about this post or any business matter in general.
