Receipts App. Merging business commitments with personal enjoyment, often dubbed ‘bleisure’ travel, presents a charming way to harmonise work and leisure. However, it is crucial to discern which costs are eligible for tax deductions. Here are five vital tips to help bleisure travellers avoid issues with the Australian Tax Office (ATO) during tax season.
1. Maintain Detailed Records of Business Expenses
When combining business and leisure travel, accurately documenting your work-related expenses is crucial. Instead of using a traditional travel log, consider utilising a receipt app like Crunchr.com.au to capture and organise all your receipts efficiently. This modern approach not only ensures you have a comprehensive record to support your claims for specific business expenses but also helps expedite the reimbursement process.
2. Claim Weekend Accommodation if Work Extend
If your business trip covers from Friday to Monday, you can claim the cost of weekend accommodations. However, remember that any additional expenses for including family or a partner—like extra accommodation, meals, or entertainment—are considered personal and should not be claimed.
3. Include Client Entertainment Costs When Applicable
Expenditures related to client entertainment might qualify for deductions if they are directly linked to business dealings. For example, if you host a client for a golf outing to hash out a contract or deliberate on work-related topics, those costs could be eligible for a tax write-off. Make sure the main intent is business-focused; such claims tend to be more relevant for business proprietors than for staff members.
4. Understand What Travel Costs Are Deductible
Besides claiming mileage for your personal vehicle, other travel expenditures—including public transit, parking charges, tolls, taxis, rideshares, airfares, and meal costs—are deductible only if they relate to an overnight business trip. Verify that these expenses haven’t been covered by your employer to avoid potential issues with the ATO.
5. Avoid Reclaiming Reimbursed Expenses – Using a Receipts App
Typically, most personal work-related expenses are reimbursed by your employer. To sidestep unwarranted scrutiny from the ATO, avoid including these reimbursed costs once more on your tax return. Nonetheless, you can still claim daily travel allowances and mileage for your personal vehicle used for work.
By keeping accurate records and understanding which expenses are claimable, bleisure travellers can manage their tax obligations efficiently and stay in compliance with Australian tax regulations. By using a receipts app you can effectively manage receipts easily.
