Who is allowed to use company miles for private flights ?
Jan 28, 2009, 1:45 pm
#1
Original Poster
Join Date: Jun 2007
Location: VIE
Programs: LH SEN
Posts: 152
Who is allowed to use company miles for private flights ?
To compare with my personal situation I would like to know, who of you is allowed to use miles earned on company paid flights for private trips. In the past this was possible for me but since this year company miles may only be used for business flights or class upgrades on business flights.
One of the reasons seems to be, that we have a new tax regulation in Austria which foresees, that you have to pay income taxes for 1,5% of your yearly ticket revenue if your company allows you to to use miles for private purposes and our HR people do not want to take the additional effort to administer this.
How about your policies?
cma410
One of the reasons seems to be, that we have a new tax regulation in Austria which foresees, that you have to pay income taxes for 1,5% of your yearly ticket revenue if your company allows you to to use miles for private purposes and our HR people do not want to take the additional effort to administer this.
How about your policies?
cma410
Jan 28, 2009, 1:51 pm
#2
FlyerTalk Evangelist
Join Date: Sep 2005
Location: Capetown
Programs: Marriott Lifetime Plat, IHG and Hilton Diamond, LH SEN, BA Gold
Posts: 10,167
We are "asked" to use miles for company purposes which is mildly enforced by allowing cattle class only on certain non billable travel even for partners.
Jan 28, 2009, 2:18 pm
#3
Join Date: Apr 2004
Location: Italy + Switzerland
Programs: BAEC GGL, M&M LT SEN, AZ Plat, WoH LT Glob, HH Diam
Posts: 195
Our company let us use our miles for private purpose, as the company considers it is a compensation for spending numerous days, sometimes week ends away from our family. In addition, I've made the experience in another company that using your miles for business purpose is not always cheaper: you gain in cost but loose on flexibility and after a few re-routings, cancellations, etc... you realize it would have been cheaper to buy a ticket!
Jan 28, 2009, 2:28 pm
#5
Join Date: Jan 2005
Location: SIN 5 days out of 7
Programs: BD*G, A3*G, BA-S, Accor Gold, IHG Amb
Posts: 5,505
How do they know where you're getting your miles from and where you're spending them?
Or are you refering to a company loyalty scheme?
Editted:
Re=read the title...I think I understand now.
Or are you refering to a company loyalty scheme?
Editted:
Re=read the title...I think I understand now.
Jan 28, 2009, 2:46 pm
#6
Join Date: Dec 2007
Location: ORD
Programs: BA, AA, SQ, UA, AC, WS, MR TIT
Posts: 8,658
I have the same situation with my company. They never question or ask where or how much miles I earn or how I spend them.
Jan 28, 2009, 2:47 pm
#7
FlyerTalk Evangelist
Join Date: Jun 2005
Location: Point Place, Wisconsin
Programs: LH HON, BA Gold, EK Gold
Posts: 14,505
Mileage use permitted for private use, but often used to upgrade business trips.
However, it would not be so easy to distinguish between privately earned miles and miles earned on business trips. (My own ratio is probably close to 50/50).
However, it would not be so easy to distinguish between privately earned miles and miles earned on business trips. (My own ratio is probably close to 50/50).
Jan 28, 2009, 2:59 pm
#8
Join Date: Sep 2005
Location: GNV which is not where we would like to be :)
Programs: ABP, Mr. Mom without the kids, Signor Mucci, DL PM, HH & Hyatt Diamond
Posts: 4,526
Boarding passes are required when submitting travel expenses along with (airport) parking receipt if used
Jan 28, 2009, 3:34 pm
#9
Join Date: Oct 2007
Location: Tasmania, Australia
Programs: M&M SEN, Amex Plat, Club Carlson, Marriott, HHonors & Accor Gold, Velocity Silver, Qantas Bronze
Posts: 3,767
This depends strictly on taxation laws. AFAIK, here in Australia it should be subject to Fringe Benefit Tax (FBT) but do not have enough experience and knowledge to ellaboarate on that more. On the other hand we are allowed to "salary sacrifice" Qantas Club membership fees, so I am not sure. Might be worth of investigating...
Did bit of investigating and it is messy... See http://law.ato.gov.au/atolaw/view.ht.../NAT/ATO/00001 if you want to read through legal documents and taxation rulings...
Did bit of investigating and it is messy... See http://law.ato.gov.au/atolaw/view.ht.../NAT/ATO/00001 if you want to read through legal documents and taxation rulings...
Last edited by vbroucek; Jan 28, 2009 at 4:00 pm
Jan 28, 2009, 6:24 pm
#10
Join Date: Oct 2007
Posts: 2,069
Our company policy is that miles can be used for up grades or private trips , reasoning being that people who travel spend time away from family etc etc , and this should be viewed as a compensation for that sacrifice
.
Tax laws are however different in every country on this subject , but the possible liability in most cases lays with the individual.
.Tax laws are however different in every country on this subject , but the possible liability in most cases lays with the individual.
Jan 29, 2009, 1:12 am
#12
Join Date: May 2005
Location: Switzerland mostly
Programs: LX Sen, EK Gold, HH Diamond, IHG Plat, Sirius Gold, BA Gold
Posts: 357
We are allowed by the company to use our miles for private purpose, as posted above, a compensation for spending time away from the family, overnight flights, etc.
Jan 29, 2009, 4:37 am
#15
Join Date: Dec 2005
Location: FRA
Programs: LH, Avis, Hyatt, ...
Posts: 4,213
Here in Germany LH has reached an agreement with tax government many years ago to pay a kind of compensation to them for all those M&M members using miles with an annual value above ~2.500 (guess currency was DEM, but maybe even EUR). This was published by LH and since then they never published anything updated. So I guess, it is still in place and there is no tax issue using the miles this or the other way.