Things you need to know expensing motor vehicle costs through your business
EPISODE 72
Notes
As a small business owner, maximising tax deductions is always a priority and one area that often causes confusion is motor vehicle expenses. Can you put your car expenses through your business? Should you buy a car in your business name or your personal name? What method should you use to calculate your business related car expenses?
In this episode, I delve into these questions and more to help you make informed decisions about expensing your motor vehicle costs through your business.
I explain the criteria that businesses must adhere to when claiming tax deductions and how this changes depending on your business structure. Diving into more detail, I explain both the Cents per Kilometer and Logbook Methods for recording business travel and when these methods are applicable. It’s important to note that travel from your home to work and back again is not considered business travel and therefore cannot be claimed as a business expense.
Motor vehicle allowances are complicated, even for numbers folks like me so I encourage you to get some help setting this up in your payroll system. I share some important information to keep in mind before purchasing a car and what to keep in mind so that you don’t end up with a hefty Fringe Benefits Tax bill.
LINKS:
Register your interest in the Bookkeeping it Real Mentoring Program here.
Check out my course Bookkeeping it Real here!
About the
Author
Bec is a chartered accountant who worked at Australia’s big firms and banks for 15-years. Faced at a crossroads in her career, she backed herself, left her corporate job and launched Straight Up Bookkeeping. 3 years and 5 staff later, Straight Up Bookkeeping is one of Australia’s leading virtual bookkeeping businesses for creatives, with a mission to free business owners from financial stress so they can grow their empires.
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