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Business travel expenses for individuals vs. businesses



J3noriginal says:
7 October 2015 at 20:13

Hi Tim, I'm considering taking a contract position. I live in Durban and the position is in Johannesburg. Which means I will be commuting weekly to Johannesburg and spending the weekend in Durban with my partner. Including the travel expenses and extra accommodation in my hourly rate drastically increases the tax that I will have to contribute, which means the opportunity is not that lucrative. I end up losing. Would it make more sense for the business to cover the cost of my weekly flights and accommodation in Johannesburg in terms of tax, rather than me as an individual?

TaxTim TaxTim says:
7 October 2015 at 22:24

If you will not be under the full time employ of the business then it would be difficult for them to cover these costs. What you can do though is charge them for disbursement fees which would be the exact expenses you have flights and accommodation and then have them repay this to you - there would be zero tax consequences then.

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