Could anybody let me know their policy regarding re-imbursement of expenses
for business trips when the employee extends their stay for personal
reasons eg holiday and also when taking spouses for non-business reasons.
We have read through the IR books which obviously mention that the employee
is liable for tax on the accompanying spouses expenses if for non-business
reasons, and also that expenses incurred only in relation to business
travel can be tax free, but when we spoke to them for further details they
were actually surprisingly vague. They were unable to confirm whether a
return flight and other travel expenses would be treated as taxable if the
employee was not returning straight after their business eg days 1-4 of
trip were business but days 5-10 were personal, returning on day 10.
They seemed relatively happy to leave it up to us to interpret, but I am
more than aware that one bit of advice from one person at the Inland
Revenue isn't always how inspectors may interpret them when we are having
an audit!! Also, how do you apportion such things as hotel room bills for
Also, how is it covered on company insurance? Are the employees only
covered for the business part of their trip, and should they get separate
insurance for the holiday part? Are accompanying spouses covered even if
they are just going along for the trip? Again our insurance is quite
vague, but I would hate to discover what it really means at the point an
employee is trying to claim, if we haven't given the correct information in
the first place.
And finally (you'll be pleased to know) - how are you notified if an
employee is planning on combining a business trip with holiday? It appears
a matter of luck with us, relying on astute admin employees keeping their
eyes and ears to the ground, rather than any official procedure.
We are hoping to come up with a new policy regarding this kind of issue,
which we will put to the IR for approval, but I would be interested in how
other establishments deal with these instances.
Many thanks for any info/advice you can provide.