I have a client who is the owner of a small business. He pays a monthly flat rate for a travel membership which allows him to stay at hotels for free when he travels. He uses this for both business and personal use. Typically he travels for the company about one week a month, but it can vary. He is asking if the company can pay a percentage of the monthly membership rate and pay it directly to the membership group. Do other small business owners or accountant have similar arrangements or policies? Thanks!
Travel Membership for company and personal use
Answers
As long as he is sharing the annual contributions proportionately between company vs. private use of the benefit, it does not really matter whether he or the company is paying the bill and charges the other party.
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Accounting