Incidental overnight expenses – A little known tax break
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Expenses incurred by an employee on behalf of a company can only be reimbursed under the 'wholly, exclusively and necessarily' rules for work undertaken 'in the performance of the duties of employment'. It is insufficient for the expense to be merely relevant to the job or connected to the duties of the job. This rule aims to prohibit the cost of expenditures that have a private purpose, which are therefore taxable as 'emoluments'. This situation may pose a problem in claims for reimbursement of expenses by an employee when traveling for business reasons, as sometimes personal expenses will also be incurred.
Incidental overnight expenses – A little known tax break
Incidental overnight expenses – A little…
Incidental overnight expenses – A little known tax break
Expenses incurred by an employee on behalf of a company can only be reimbursed under the 'wholly, exclusively and necessarily' rules for work undertaken 'in the performance of the duties of employment'. It is insufficient for the expense to be merely relevant to the job or connected to the duties of the job. This rule aims to prohibit the cost of expenditures that have a private purpose, which are therefore taxable as 'emoluments'. This situation may pose a problem in claims for reimbursement of expenses by an employee when traveling for business reasons, as sometimes personal expenses will also be incurred.