Empower Your Business

Accounting is Just the Beginning

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Can you take a holiday on the IRD?

I had a question from a client a week or so back who mentioned that a friend of his had been told by his accountant that he could claim all his holidays against tax and asked me if it was true. As usual where tax is involved, it is not straightforward, but yes it is possible to offset the cost of a holiday against your tax in the right circumstances.

The key to success here is the purpose and motive for your trip. If the primary purpose of your trip is for business, and any holiday aspect incidental, then you would be able to claim 100% of the cost of the trip (providing you paid for the accommodation, food and any activity costs yourself on the non-business days). If, on the other hand, there are two purposes for the trip, business and a holiday, then you would need to apportion the cost of the airfares/hire car etc.

A couple of examples will help you understand the rules, click here.