Business Travel Expenses
Posted On: 30/06/21 - 0

Things to be mindful of as business travel picks up.

After a year of caution due to the COVID-19 pandemic, travel across Canada is making a comeback. This also  includes business travel and business travel expenses. The rollout of vaccines and falling case counts across the country mean your business may be considering returning in-person conferences, events and meetings.

Business Travel Expenses

  • If you are traveling exclusively for your business, most business-related expenses are deductible. Save anything that supports the expense, such as receipts and bills from hotels, taxis, ridesharing and meals. During the business trip, document who’s traveling and dining with you and for what purpose. The CRA is very particular about this!
  • Don’t forget to keep tabs on business mileage. The limit on the deduction of tax-exempt allowances paid for business purposes will remain at 59 cents per kilometre for the first 5,000 kilometres driven, and 53 cents per kilometre for each additional kilometre. There are other options to this expense.  Call for more details.
  • Remember that some of these travel expenses are only deductible on days when work is conducted. So, if traveling out of town for work, costs of personal entertainment such as a sightseeing tour won’t count.
  • If someone who isn’t your employee such as family joins you on the trip, their expenses are disallowed. Having them perform some incidental business service, such as recording notes from a meeting, isn’t enough to establish a business purpose.

It can be a lot to manage! At PADGETT BUSINESS SERVICES N.W. , our team of accountants,  bookkeepers, and tax professionals can help you with tax strategies, and business travel expenses that will set your business up for success, whether you’re planning to travel or not.  Contact us today for a no charge consultation.

12203-107 Avenue.
Edmonton, Alberta.
T5M 1Y9

Call us:
780.482.7297