Are You Paid To Use Your Car at Work?

Did you know if your boss pays you to use your vehicle at work the payment is treated as income?

You should account for the running costs to get your tax back, but there are three different ways to work out the allowance.  Xpnsit knows them all and works it out for you getting the maximum tax refunds.

Ben says what they are in the video. Many people use their car at work. It could be simply for jobs like going to collect the mail from the post office in the morning.  Usually your employer will pay an allowance to cover these costs.  What some workers may not know is this allowance is treated by the ATO as income.  So it’s in your best interest to get tax back deductions for your car's use.

The first method

Cents per kilometre method  

Its the most commonly used its the quickest to calculate. You can only use this method if you expect your total annual work related travelling to be less than 5000kms. You don't need written receipts but you will need to be able to show how you arrived at your total figure. Also, the allowance per kilometre is based on the size of your vehicle's engine and are set by the ATO each year.  The bigger the engine the larger the allowance.