Business travel expenses
Employees are often required to pay their expenses upfront on business trips. This is referred to as business travel expenses. There are various types of travel expense: expenses related to the use of a personal vehicle (known as kilometre allowances), business travel costs, car hire, parking, etc. Kilometre expenses are calculated according to a scale defined by the state. The other expenses each have specific reimbursement conditions. This article tells you everything you need to know about business travel expense calculation and reimbursement.
Business travel expenses
“Travel expenses” are expenses incurred by employees or associates travelling for business reasons.
There are two business travel expense categories: diverse travel expenses and kilometre allowances.
Travel expenses may fall into several areas and are generally reimbursed at their actual value, provided that the necessary supporting documents are submitted:
- Business travel expenses
You can receive a reimbursement for your:
- plane tickets
- train tickets
- car rentals
- hotel stays
Make sure you keep the original receipts for your trip to ensure you will be reimbursed. An expense report without receipt often results in non-reimbursement, under tax authority rules.
- Home-work travel costs
Businesses must cover some of their employees’ public transport costs. Reimbursements can be set at a certain percentage of the cost of the entire journey between an employee’s home and their workplace.
- Car or taxi rental costs
When an employee wishes to book a taxi ride or rent a vehicle, they must submit their request and receive company approval.
Reimbursements will cover taxi fares, toll charges and, where applicable, parking fees, subject to proof of payment.
- Other expenses included in the travel expenses category
The following costs are also deemed travel expenses:
- Parking and toll charges in specific cases
- The cost of purchasing a vehicle and its equipment
- Fuel costs (included in the kilometre scale)
- Insurance costs (included in the kilometre scale)
- Maintenance costs (repairs, tyres, exhaust, servicing, etc.), also included in the kilometre scale.
When employees use their own vehicle for business travel, they are responsible for the costs. They can therefore benefit from compensation for each kilometre travelled: this is known as the mileage allowance.
Mileage allowances are calculated on the basis of an annual scale defined by the State. They cover the following costs:
- vehicle wear and tear
- vehicle maintenance
- tyre wear
For example, in the UK, mileage allowances are set by the HRMC.
To benefit from kilometre reimbursements:
- The vehicle must not be registered in the name of the business
- Travel expenses must be justified (date, location, number of kilometres travelled, names of customers involved in the trip).
Implementing an online booking management tool for travel expenses
To avoid compiling too many expense reports, you can also opt for a business travel booking management tool like Traveldoo Travel. Our online business travel booking solution is a simple and efficient approach that offers your travellers full and independent control of their business travel bookings.
They can indicate their business travel criteria, compare offers from different suppliers on a single results page and make their reservations in just three clicks. Thanks to its user-friendly interface, the Traveldoo Travel solution offers an autonomous, fast and simple booking experience.
Business travel expenses come with their own specificities and reimbursement conditions. For travel expenses, employees have to calculate their allowances according to the kilometre scale published each year, while they have to retain payment receipts to secure reimbursement of their other travel expenses.