How to Charge for Travel Time

Time is money, no matter what business you practice. When you travel during regular business hours, you use time that would otherwise be spent on work for your company. Charging for travel time ensures that your travel costs are covered and that the potential money you could make from other tasks is partially covered. Keep open communication with your clients regarding all travel time costs.

Instructions

1

Choose the rate you want to charge for travel time before creating contracts or negotiating with the customer. One rate for travel time could be 50 percent of your hourly rate. If you work on salary, calculate the amount of money you make per hour. Fifty percent may seem like a lot, but remember that you cannot work for other clients during the time you spend on trains, planes or automobiles.

2

Tell your client that you will include travel time for this job. Do not surprise your client with an invoice that includes time traveled. Work with your client to spell out the exact terms of the work contract and send the complete document for the client to look over and sign.

3

Keep a logbook that precisely details your travel time. For example, if you travel by plane, log the time it takes to check in, go through security, wait at the gate, fly and travel at your destination to your client. The logbook is not only for your records; your client may ask to see exactly how the travel time adds up. The logbook may also come in handy when you file your tax deductions at the end of the year.

4

Calculate your total travel time at the end of your business trip and add the travel cost on the invoice for your client. Travel time is paid for when your client pays the total bill. Do not charge the travel time separately; include the amount in the final total.