Claiming Car Costs Related to Work
In some circumstances you may be able to reduce your tax by utilizing a deduction for work related travel using your car.
The most common methods are the
- Cents per km method
- Log book method
The first is probably the most simplest as it requires you to keep less receipts and invoices. In some circumstances you may be at the time work related travel in your vehicle for a maximum of 5000km at a certain rate per km, depending on the size of your engine. When you claim this method, you may not claim other costs of your car as the rate per kilometre is all inclusive of all the running costs of your car.
The second method is the log book method and this requires you to continuously enter into a log book your work related travel. You will either the course of the three months determine the percentage of total kilometres which are work-related kilometres. This percentage would then be used to apply this portion of all the running costs of the car, including the depreciation of new vehicles, interest cost of the vehicle, fuel, registration, insurance and repairs and maintenance. You will only need to do the log book every five years but you must also keep all your receipts of your car costs.
For advice in your personal circumstance to minimize your tax by claiming a deduction for your work related motor vehicle costs call or book in for a tax return appointment with experience taxation consultants which can maximize your tax refund. Call us now on 833744602 to book in your tax return