Understanding Deductible and Non-Deductible Business Trip Expenses
1. What expenses are deductible on a business trip?
Deductible business trip expenses include costs directly related to your travel such as accommodation and transport expenses (including flights). To ensure these expenses are deductible, it is essential that you obtain and retain valid invoices. Please upload these invoices under the "Purchases" section of the Companio dashboard for proper accounting and reimbursement.
2. Which expenses are non-deductible and how are they handled?
Non-deductible expenses during a business trip typically include meals, beverages, incidental costs like WiFi at the airport, and public transport tickets without a proper invoice. These expenses should be covered with personal funds. However, for board members traveling on business, these are precisely the expenses that can be offset by the daily allowance. For more detailed information about what the daily allowance covers, please visit our detailed guide here: Daily Allowance for Board Members.
3. How should I upload documents related to business trip expenses?
- For Deductible Expenses: Invoices related to accommodation and flight tickets should be uploaded in the same manner as any other purchase invoice. Please go to the "Purchases" section of your Companio dashboard and upload the necessary documents there.
- For Non-Deductible Expenses: Receipts and tickets that justify the use of your daily allowance should be uploaded in the "Travels" section, linked to the specific trip they pertain to. This helps in maintaining a clear and organized record of expenses covered by the daily allowance.
4. What if I uploaded a deductible invoice as a non-deductible business trip expense?
If you happen to upload a proper invoice for deductible expenses (such as accommodation costs or flight tickets) in the trip section as a non-deductible expense, don't worry, simply go to the Purchases section, and upload the document again. The system will notify you that you already uploaded that document as a non-deductible expense receipt or ticket, and ask you if you want to convert it to a proper purchase invoice. Simply say "yes" and the invoice will be removed from the trip as a non-deductible expense and added to your purchase invoices.
Deductible business trip expenses include costs directly related to your travel such as accommodation and transport expenses (including flights). To ensure these expenses are deductible, it is essential that you obtain and retain valid invoices. Please upload these invoices under the "Purchases" section of the Companio dashboard for proper accounting and reimbursement.
2. Which expenses are non-deductible and how are they handled?
Non-deductible expenses during a business trip typically include meals, beverages, incidental costs like WiFi at the airport, and public transport tickets without a proper invoice. These expenses should be covered with personal funds. However, for board members traveling on business, these are precisely the expenses that can be offset by the daily allowance. For more detailed information about what the daily allowance covers, please visit our detailed guide here: Daily Allowance for Board Members.
3. How should I upload documents related to business trip expenses?
- For Deductible Expenses: Invoices related to accommodation and flight tickets should be uploaded in the same manner as any other purchase invoice. Please go to the "Purchases" section of your Companio dashboard and upload the necessary documents there.
- For Non-Deductible Expenses: Receipts and tickets that justify the use of your daily allowance should be uploaded in the "Travels" section, linked to the specific trip they pertain to. This helps in maintaining a clear and organized record of expenses covered by the daily allowance.
4. What if I uploaded a deductible invoice as a non-deductible business trip expense?
If you happen to upload a proper invoice for deductible expenses (such as accommodation costs or flight tickets) in the trip section as a non-deductible expense, don't worry, simply go to the Purchases section, and upload the document again. The system will notify you that you already uploaded that document as a non-deductible expense receipt or ticket, and ask you if you want to convert it to a proper purchase invoice. Simply say "yes" and the invoice will be removed from the trip as a non-deductible expense and added to your purchase invoices.
Updated on: 23/04/2024
Thank you!