All about mileage allowances and how to calculate them automatically



  • In the case of travel expenses it is important to differentiate between the concepts of plan and "mileage". The term plan refers to sums of money intended to cover the cost of maintenance and living expenses of an employee during a work trip. These are not cumulative, so if they are not spent, they are lost. For its part, mileage is the economic compensation that the company offers to workers who use their private vehicle to get to work outside their usual place of work . This money should be enough not only to cover fuel, but also maintenance costs, such as wear and tear on wheels and mechanical parts, oil, and even the proportionate share of insurance and road tax.

    Mileage does not include fines tolls or parking tickets. The worker must take responsibility for it even when the vehicle is a business. The other two concepts need to be included in the expense report for the company to take care of. Justification of travel expenses. For workers to receive Consumer Email List compensation for their travel expenses, these must be duly justified. The process should be defined in the company's expense policy. As a general rule, the presentation of a series of documents is required: The complete invoices (or failing that, the supporting documents), with numbering, date, place of issue, tax data of the issuer and the recipient, complete description, tax base, tax rate applied, proportion invoiced and currency in which it is paid.

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    The reason for the trip the name of the customer visited the people who attended the meeting or the number of guests (in the case of catering costs). If using a travel card, it is necessary to save the receipt. To justify the kilometers traveled, it is also necessary to note the point of origin and the destination. Locomotion costs (taxi, train, plane, bus, etc.) are justified with the invoices and those for tolls and car parks, with supporting documents. Regulations concerning travel expenses. The procedure for claiming plan and mileage expenses should be fully stipulated in the company's travel expense policy.


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