For every company, big or small, travel and subsistence is an important thing to manage. In this age and day any employee might be in the situation when they need to go on a business trip. So, what is travel and subsistence expenses exactly? It is an approximate calculation of the cost of spending on a business trip. This includes travel expenses, hotel, meals and any other details. Travel and subsistence expenses depend on how long the travel is going to be. By this criteria, we can divide them into two types: long and short travels. Difference between these two will just be things included in your trip. The main difference is in two employment structures: self-employed and employees. Do not get confused if you just moved from one structure to another. This article aims to make everything about travel and substance expenses clear.
1.What do they have in common?
For both any expenses must be strictly business related. Business trip is not the same as you going on a vacation. When you are going on a business travel, any expenses are exclusively aimed for your job and tracked by your company. If you are the one who is making the list of expenses, deduct anything not connected to business. There’s everything for your comfort, but it never includes personal expenses. This should not be surprising, because companies usually reimburse or fund your travel, so they should know exactly what budget to consider.
2. Differences:
if you are self-employed, your travel and subsistence expenses include travel costs, food and drink during your stay and also, during your travel in case it’s more than couple of hours. apart from this, your company will also provide overnight accommodation. Sometimes you are given the budget and can choose the hotel yourself. As we have already said, any personal expenses will not be included. For self-employed companies, travel and subsistence usually do not pay for parking or any penalties.
For limited companies, everything that is included in self-employees is included for them too. The difference is that when you are an employee on a business trip you are separated from the company, which means that you are claiming those expenses from the company. In this case, expenses will mostly be reimbursed.
Of course, travel and subsistence expenses should be discussed with the company itself. Most of the time you will have the chance, if this is the case, to personally discuss every detail of your travel with the manager. It should be done within a month before the travel. Every company has rules and policies for events like this. First of all, read them carefully and if you think that there’s something you need and is not included, talk to the head of your company. Policies can be changed if you request something necessary for your business trip.
1.What do they have in common?
For both any expenses must be strictly business related. Business trip is not the same as you going on a vacation. When you are going on a business travel, any expenses are exclusively aimed for your job and tracked by your company. If you are the one who is making the list of expenses, deduct anything not connected to business. There’s everything for your comfort, but it never includes personal expenses. This should not be surprising, because companies usually reimburse or fund your travel, so they should know exactly what budget to consider.
2. Differences:
if you are self-employed, your travel and subsistence expenses include travel costs, food and drink during your stay and also, during your travel in case it’s more than couple of hours. apart from this, your company will also provide overnight accommodation. Sometimes you are given the budget and can choose the hotel yourself. As we have already said, any personal expenses will not be included. For self-employed companies, travel and subsistence usually do not pay for parking or any penalties.
For limited companies, everything that is included in self-employees is included for them too. The difference is that when you are an employee on a business trip you are separated from the company, which means that you are claiming those expenses from the company. In this case, expenses will mostly be reimbursed.
Of course, travel and subsistence expenses should be discussed with the company itself. Most of the time you will have the chance, if this is the case, to personally discuss every detail of your travel with the manager. It should be done within a month before the travel. Every company has rules and policies for events like this. First of all, read them carefully and if you think that there’s something you need and is not included, talk to the head of your company. Policies can be changed if you request something necessary for your business trip.
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