If the costs relate to both a business and a private expense (for example an employee adds a holiday to the business trip), you’ll need to apportion the costs between deductible and non-deductible amounts and keep a record showing that you’ve done this on a reasonable basis.Īs a company isn’t a person, the private/domestic limitation doesn’t apply, but a company will need to be careful if it covers an employee’s private costs (for example, adding a holiday to the end of the trip or covering the costs of an employee’s partner or family). A business can’t deduct any part of the travel costs that are of a private or domestic nature, of a capital nature, or incurred in deriving exempt income or income from employment. Travel costs: Income tax deductions can be claimed for overseas travel costs to the extent that they have a connection with deriving assessable income or carrying on a business. This is intended to replace a previous policy statement that date back to 1995. Inland Revenue has recently released a draft Questions We’ve Been Asked, Deductibility of overseas expenses, which sets out some guidelines on what is deductible and what isn’t. When it comes to working out which costs are deductible to the business, and which are not, you’ll need to be clear about what the costs relate to, and check that you’re treating them correctly. They might also decide to add on a holiday during a work trip or take their partner or family with them. When a business owner or its employees travel for work, they’ll incur a range of costs including airfares, taxis and rental cars, hotels, meals, and incidental expenses. As you tuck your boarding pass into your carry-on, (or farewell your employees as they head for the door), you might want to think about giving your accountant a call when you get back – or better still, before you leave home – to make sure you’ve got any tax issues sorted as well. Our LinkedIn feeds are full of happy business owners touring the world meeting their customers, drumming up sales, and connecting with employees and business partners they’ve never met before, or haven’t seen for a long time. on the last day of the applicable tax year.įourthly, calculate your total kilometres for the full year (closing kilometres less opening kilometres).įifthly, calculate your total business kilometres for the year (sum of all business kilometres).Opening the borders has released a wave of Kiwi entrepreneurs who have been champing at the bit to get overseas for two long years. Thirdly, record your motor vehicle’s closing odometer reading on the last day of February (28/29) of the next year, i.e. Top Tip: Without a logbook you won’t be able to claim the cost of business travel against your travel allowance. 2014-2015 SARS Logbook for the 1 March 2014 – 28 February 2015 assessment year and tax season starting.2015-16 SARS eLogbook for the 1 March 2015 – 29 February 2016 assessment year and tax season starting.2016-17 SARS eLogbook for the 1 March 2016 – 28 February 2017 assessment year and tax season starting.2017-18 SARS eLogbook for the 1 March 2017 – 28 February 2018 assessment year and tax season starting.2018-19 SARS eLogbook for the 1 March 2018 – 28 February 2019 assessment year and tax season starting.2019-20 SARS eLogbook for the 1 March 2019 – 29 February 2020 assessment year and tax season starting.2020-21 SARS eLogbook for the 1 March 2020 – 28 February 2021 assessment year and filing season starting.2021-22 SARS eLogbook for the 1 March 2021 – 28 February 2022 assessment year and filing season starting.2022-23 SARS eLogbook for the 1 March 2022 – 28 February 2023 assessment year and filing season starting. ![]()
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