Claims for private motor vehicle use for employment or business purposes have changed! These days there are only two methods available for employees, sole traders, contractors and partners to claim for private motor vehicle use for employment/business – the log book method or the cents/kilometre method. Each method has its advantages and disadvantages but where there is significant employment and/or business use, the log book method will maximise your claim!
Most of us have an aversion to maintenance of log books, however the recording of employment/business trips (other than home to work, work to home) for just a twelve week period will provide a log book valid for five years! Further, the log book will establish an employment/business use % which may then be applied to all vehicle expenses such as depreciation, fuel, repairs and maintenance, loan interest, registration and insurance.
The cents/kilometre method of claim is limited to a maximum 5,000 kilometres per annum even though more kilometres may be travelled for employment/business purposes. This is known as the “reasonable estimate” method because that’s all you’ll need to substantiate the claim – a reasonable estimate! The number of kilometres will be multiplied by the set rate, presently 68c/kilometre for 2018/2019.
Still unsure about private motor vehicle use for employment/business?
CONTACT US TODAY at BSN & Co if you need help with your claim for private motor vehicle use for employment/business.