FlyerTalk Forums - View Single Post - OT - small business owners - when do you use points for business?
Old Dec 8, 2008 | 10:55 pm
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Swiss Tony
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Originally Posted by antichef
The costs of the hotel are a business expense which can be fully set off against income for proper tax reduction reasons. As you cannot do that for holidays i suggest putting it through the business.
I fully understand that, but my point is that there has to be a notional level where you're better off not putting it through the company and instead taking the money out as a dividend. You're then effectively using this additional taxed dividend payment as compensation for the miles/points etc.

My 'calculations' suggest that once you're paying a 60% premium, you're actually wise to use an alternative solution such as the one I outlined above. That's what I was looking for comment on!
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