Holiday and costs go hand in hand. But would some of these costs be tax deductible? Maybe yes.
Holiday and costs – the company car
The moment your employer makes available for you a company car. The moment your own company makes available for you a company car. In both situations a percentage is added to your income for private use.
The holiday with the company car is private use. You have already paid for that via the percentage added to your income. Consequently all the costs related to the company car you can deduct from your company result. Or if you are an employee, ask your employer to reimburse the costs.
Costs such as petrol, battery charge, diesel. The toll or peage. The parking fees, even for the museum or castle you visited. The ferry, the car train or tunnel.
The entrepreneur simply deducts the costs. The employee maybe first need to touch base with his or her employer how to exercise this.
Holiday and costs – wifi
The moment you are on holiday and you need to log on to the company system to get something done, you need an internet connection. That is often wifi and wifi can be expensive. Please ask for a receipt. If you are an entrepreneur, in the name of the company. If you are an employee and your employer appreciates it very much you log on, have the employer pay direct.
Those who have children must be aware that children consume massive amounts of wifi time. If some of that time is your business time, you can only deduct part of these wifi costs from your result of the company. You need to make acceptable what percentage that is.
Holiday and costs – client visit
Some visit clients during the holiday. I have done that as well, but do not recommend this. You cannot plan a lot during that day, you need to keep one set of clothes orderly enough for the visit. And despite the client being nice, you really do not want to work on your holiday destination.
If you do work on your holiday destination, and you need to rent some space to meet. Or you rent an office, with secretary, internet connection, the whole lot. That are tax deductible costs for the entrepreneur. The employee is best to have the employer pay directly for these costs.
Holiday and costs – client visit how not to do it
The jurisprudence does know the medical conference in Davos case. Here the medical experts were invited to attend the conference. This was conveniently organized during the winter skiing season and more or less in the children holiday period.
The medical expert in this court case deducted everything related to this conference visit. The hotel booking for the full family, the car, skiing pass. The court did not agree with the full cost deduction. The costs related to the few hours during the one day the conference was held, were pro rata to the 10 day period accepted as costs. And then only the costs for the medical expert, not the family costs.
Tax is exciting
We think tax is exciting. We think a holiday is exciting. In this time and age some continue to work during the holiday period. And while this is being done, you might as well claim some of the costs as company costs or refundable costs from the employer.
