Q: My client, who works as a traveling executive chef, gets their accommodation covered by their employer but not their meals. Can they claim meal expenses using the ATO's reasonable meal rates, even if their payment summary doesn't show any travel allowance?
A: Yes, they can claim, but there are a few rules:
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The allowance needs to be counted as part of their income, even if it's not listed on their payment summary. If it's not included, they can't claim.
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They can only claim the actual amount they spent on meals, not just the ATO's set rates. If what they spent is less than the ATO's rates, they don't need to prove it. But if it's more, they'll need to show proof.
This is a big focus for the ATO this year. Many people make mistakes by automatically claiming the ATO's rates, even if they spent less. So, it's important to make sure your client gets it right.
If you have any questions, feel free to contact Tax Ideas Accountants & Advisers. You can also book an appointment through our live calendar.
