Paying travel expenses

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mct1

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I organise meetings for a professional organisation, and we offer speakers travel expenses at public service rates.

This year one of our speakers travelled 170km return, but in someone else's car - he doesn't own a car himself (lives in a city). Public transport wasn't practicable.

Is he still entitled to the tax-exempt travel expenses, or would it be better to offer a gift (voucher) for the equivalent amount?

Anyone know please?
 
These guys would need to raise an invoice for speaking. This is essentially a trade not an employment.

Bad news - none of these payments qualify under Employee Travel expenses.

And in a trade, a sole trader is not allowed to deduct for travel expenses.
 
As a sole trader he can deduct valid business expenses from his taxable income, so in the case of your speaker who borrowed someone else's car, if he paid for the fuel he could claim the actual amount incurred (based on receipts) as a deduction against his self-employed income.

Mileage and Subsistence rates are only valid when paid by an employer to their employees, not to sole traders.
 
Thanks for the replies, guys - it certainly seems a confusing area. In fact, my husband who's a sole trader is allowed to claim travel expenses tax free from organisers of educational meetings he speaks at. That's been sanctioned by 3 different accountants over the years and by the Revenue. The person I mentioned has now submitted a mileage rate claim, so I guess I'll just send him the cheque. What he does with it tax-wise is his own business.
 
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