Work Travel Expenses
Travelling on the job is not an uncommon practice. In the construction industry such as a builder or a timber beam specialist, travelling on the job can become a norm.
You are able to declare a reduction for overnight traveling expenses where:
- Your employer needs you to travel to a worksite to perform a job.
- You are needed to rest far from your residence for one or more nights while you are doing that job.
- You are not living away from your house.
Travel expenses consist of:
- Holiday accommodation
- Incidental expenditures
If you are declaring travel expenses and you obtained a traveling allowance from your employer, you must record the allowance as income at ‘2 Allowances, profits, pointers, supervisors fees etc’ on your income tax return.
Overnight traveling costs you cannot claim
You cannot claim a deduction for the travel expenditures you incur if:
- Your company compensates your costs, or
- You live far from your normal home to complete your work.
If you live far from your house to perform your job, you might obtain a living-away-from-home allowance from your company. A living-away-from-home allowance is paid to cover your added accommodation and meal prices when you are briefly called to live far from your usual address in order to execute your duties of work. A living-away-from-home allowance is not revenue as well as you cannot declare reductions in your lodging as well as meal prices at the temporary job area.
Your timber beams company should not show a living-away-from-home allowance on your settlement recap. If it shows up on your payment summary, consult your company that there is an error as it has been displayed.
Maintaining documents of your overnight traveling costs
Costs for which you do not have to maintain documents
You could declare a deduction for the amount you spent on travel costs for a home extension builders and design business without keeping all your documents if:
- You received a travel allowance to cover your holiday accommodation, or meals or expenditures incidental to the travel (a token quantity paid as a traveling allowance is declined as a sensible cover of such expenses).
- Your traveling costs amounted to or less than the reasonable allowance amount set.
However, you could be asked to discuss exactly how you worked out the quantity you came up with. If the allowance doesn’t appear on your settlement recap and also was not more than the practical allocation quantity, you do not need to show it on your income tax return as long as you:
- Invested the entire allocation on insurance deductible expenditures, and.
- Are not asserting the reduction.
Otherwise, you should show the allowance on your income tax return.
The appropriate allowance quantity for any situation is described in the annual taxation determination explaining:
- When you do not need evidence of your expenses.
- The way in which you could claim expenditures.
The receipt of a traveling allocation does not mean that you can immediately claim the allowance quantity laid out in the yearly taxation determination. You can only claim the quantity you in fact spent on the holiday accommodation, meals and other associated costs.
Expenditures for which you have to maintain documents.
If you are claiming a greater amount than the practical allowance amount, you must keep documents to show the sum total you spent, not simply the quantity over the limit. These records include:
- A traveling journal if your travel is 6 or more nights in a row, that is, a document that shows the days, areas, times and also the period of your tasks and also traveling.
- Billings, receipts or various other records showing your traveling expense details. If it is difficult to obtain an invoice for a meal you has, for example, if you buy a meal from a vending machine, you can maintain diary entries as your receipt.
If you do not get a travel allowance, you should keep all of your documents.
If you obtained a traveling allowance that is more than the practical allowance amount, you must reveal the allowance as income at ‘2 Allowances, incomes, tips, directors charges etc’ on your tax return.
Honour transport repayments (fares allowance).
You could claim a reduction for expenses covered by award transport payments only if the expenses are for insurance deductible job-related traveling.
Not all travel will involve the use of flights such as travelling from an interior design company in Adelaide to a company specialising in house extensions in Melbourne but when flying keep in mind these tips:
- Utilize your flight time to unwind and prepare for the journey ahead. Do not fool yourself into working at 35,000 feet. But if you believe that you will be needing Wi-Fi, check what is available on the plane prior to you boarding.
- Take a spare change of clothing in your carry-on bag. If you wind up with no bag, at least you will have a backup option. Keep it light and easy.
- Be kind to everybody who’s on the clock (working). Airline and hotel workers can often carry lots of privileges that could trickle down to the clients. Becoming rude and aggressive together will immediately set you down the list for upgrades.
- Prevent using airplane blankets and cushions. If they don’t arrive from a plastic bag, they likely have not been washed in a while. Pack your own blanket and comfortable pillow.