Travel as a representation expense

Carol Bernard

Some of the most common representation expenses are costs related to travel. Customer visits, meetings, etc. often require the use of means of transport and this, of course, has associated costs. 

Travel costs are common on any self-respecting expense report. The use of a car (whether the employee’s own or a company vehicle) or other types of transport is a fundamental requirement on business trips. Travel expenses, therefore, consist of any cost generated that may be associated with a corporate trip. Parking fees, tolls, taxis, train tickets, etc.

Mileage expenses, however, often involves their own particular associated management, as they cover costs reimbursed by companies to an employee to compensate for any type of wear and tear or consumption that the vehicle has had.

Travel_as_a_representation_expense.jpgAspects encompassed within mileage expenses

Although the first thing to come to mind when talking about mileage allowances is the cost of fuel, this is just one of the aspects that make up this area of travel expenses.

  • Fuel: accounts for 60% of mileage expenses. One of the quintessential aspects in relation to mileage.
  • Wear and tear of the vehicle: occasional expenses resulting from the deterioration of the vehicle, as well as any possible breakdowns.
  • Taxesthe price allowed per mile also takes into account the costs of for the vehicle’s registration, road licence, etc.
  • Insurancethe car’s insurance is another expense covered by the mileage allowance. This concept must be taken into consideration due to the legal implications it may have for the company.

Mileage expenses are the costs reimbursed by companies to an employee to compensate for any type of wear and tear or consumption that the vehicle has had during a work-related trip.

All of these aspects add up to a single figure that is paid to the employee. In essence, it becomes a kind of price per mile that the employee is paid.

New Call-to-action

Subscribe to our blog and do not miss the news