In addition to the reasons listed already, are you sure you want to blur the line between your points and the company's travel. You cannot unring the bell. Once the bean counters put "your points" and "company travel" together, might you run the risk of having an expectation that your points be used for company travel. Regardless of reimbursed or non-reimbursed, you might find yourself being expected to use the points in the future.
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Quote:
Originally Posted by CGNC
-Buy a ticket, roughly around $480 at present and be reimbursed.
If your company turns around and bills your client for the $480, and your client happens to be the government, then you are running the risk of facing a criminal charge.
We don't know what kind of reporting or business relationship is involved here, but I can almost assure you, at the very least - this practice will be frowned upon, and more than likely it could be in violation with a contractual relationship you or you company have with an employer or other company, it could be against policy, it could be illegal.
The reasons are obvious - there are serious conflict of interest considerations. You are benifiting monetarily from travel (yes there is that component with any travel and frequent flyer points, but here we are talking hard cash which will far exceed the value of an FF credit points) - thus you are being encouraged and rewarded for spending your employees or customer money beyond stricly business need considerations, not only that, you are being encouraged and rewarded to pick the most expensive route and time to travel to get the greatest reimbursement. Can you see the control weakness here? That's why, for all but those very small or loosly controlled companies, this is forbidden.
DO NOT do option 2 unless you want to pay taxes on that amount.
I don't do that for my own business
& my father doesn't do that for our family business. We both only use our miles for personal flying b.c of the tax issues that arise with reimbursing yourself for award tickets.
Check with your accountant, and depending where you are located, if you reimburse yourself for an award ticket you will be taxed on that $$ as normal taxable income.
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Quote:
Originally Posted by golfguy714
My company has a policy that allows this practice. Our travel agent will validate the ticket cost and then book your flight with miles. The associate then expenses the flight cost and gets reimbursed.
Is this "reimbursement" then treated as taxable income to you by your company? IANAL but I think it should be.
Programs: A3*Gold, SPG Plat, HyattDiamond, MarriottPP, LHW exAccess, ICI, Raffles Amb, NW PE MM, TWA Gold MM
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Quote:
Originally Posted by CGNC
This is an interesting conversation.
One other reason I was contemplating doing this was because I know with an award ticket, I could make changes in the future and not incur a cost, yet I need to book the ticket to be reimbursed by Monday. Maybe the best thing to do is ask those paying and see if its ok on their end.
Even if it's OK to those who will "reimburse" you, it may not be OK to the IRS (regarding their tax returns and yours) or to the airline FF program that forbids the selling of miles or award tickets.
