The end of a financial year can be a daunting time for a lot of people, and in particular the time required in working out what you can and cannot claim in your tax return. Travel expenses are one of those items, and many medical professionals incur this expense throughout the year to attend conferences and seminars, whether in a domestic or international capacity.
Did you know that travel to these events can be tax deductible?
Here we explain the all important details about travel expenses – what types can be claimed as a tax deduction and what records are required to be kept.
What can be claimed?
When travelling for business, such as attending a conference or seminar, it takes some of the pressure off knowing what expenses can be claimed. Some of the claimable expenses include:
- Transport costs, including airfares, train, buses and taxi fares
- Tolls, parking fees and short-term car hire
- Meals and accommodation costs (if your trip includes an overnight stay)
- Expenses incurred that relate to motor vehicle travel, e.g. petrol and repair costs for a hire care
It is important to remember that any private/personal portion of your travel costs are not tax deductible and therefore your deduction should be apportioned accordingly. In addition, you can only claim travel expenses that you have paid – you will not be able to claim expenses that have been reimbursed.
What records need to be kept?
Whether your travel is domestic or international, written evidence needs to be kept for all travel expenses incurred. Written evidence simply means keeping your receipts (e.g. airfares, accommodation, tax fares and hire-car expenses).
If you are away from home for six or more consecutive nights for business travel, a travel diary (or a similar document) is required to be kept to record a higher level of detail for you business trip. A travel diary must record the following:
- The nature of the activity
- The day and approximate time the business activity began
- How long the business activity lasted
- The name of the place where you engaged in the business activity
Have you incurred travel expenses and are unsure whether you can claim them as a tax deduction? Get in touch with BLG Business Advisers online or by calling (02) 4229 2211 today.