18 Examples of Travel Expenses

John Spacey, June 18, 2020

Travel expenses are business expenses related to business travel. These must be viewed as ordinary and necessary to be deducted for the purposes of taxation and financial reporting. This includes a notion of scale. For example, a large business may deduct private jets and luxurious hotels for executives and these could be deemed ordinary and necessary by authorities because these expenses are relatively small compared to revenue. A small business wouldn't typically be allowed to expense the same level of travel as this would be a relatively high portion of revenue, making it feel extraordinary and unnecessary. The following are common types of travel expenses.

Administration Fees	Baggage Charges
Cleaning & Laundry	Communication Expenses
Delivery Costs	Equipment Rental
Event Fees	Facility Rental (e.g. Meeting Rooms)
Incidental Expenses	Lodging Expenses
Meals	Parking Fees
Rental Vehicles	Transportation Services (e.g. Taxis)
Travel Fares	Travel Insurance
Vehicle Maintenance Costs	Vehicle Operation Costs

Incidental expenses are small payments such as tips or a bottle of water. In some cases, there is no need to keep a receipt for these but they are capped at a daily rate.

Notes

Valid expenses depend on the nature of your business and trip. For example, a diving excursion would typically look like personal travel but a film production team scouting locations for an diving scene might view this is a valid business expense.

Tax treatment of business travel differs greatly by country. For example, some countries only allow 50% of meal costs to be deducted while others may place a cap on the price of meals.

Employers typically have their own internal rules regarding expenses. In some cases, employers offer a per diem (daily allowance) that greatly simplifies expense reports. This rate may be capped by tax authorities whereby it can't be expensed past a certain amount per day.

Executives may receive extensive payments for travel. For example, a per diem to compensate for disruptions to their household while they are traveling. Tax authorities are likely to view this as compensation.

In many cases, use of your own vehicle is expensed at a rate per mile defined by a tax authority or your employer.

Trips that are partially personal may be only partially expensed. For example, a trip could be deemed 70% business and 30% personal.

Each tax authority publishes detailed rules for travel expenses.