Which motor vehicle expenses to claim through company versus personally?
By Marc Sevitz · Updated
Do you receive a travel allowance or any reimbursement from the company? How are you paid, a salary?
Yes, I am paying myself a small salary out of the company, which includes a travel allowance. I keep a logbook of all my business travel. I know there is the fixed method of determining a travel deduction, which includes the petrol portion. If I make the company pay for my petrol, would I just not include this part of the deduction in my calculation? If that is allowed?
If you receive a travel allowance then you will be able to claim all your costs including wear and tear when you file your return which will reduce your taxes payable. You would include these in the travel allowance section of the tax return.
Thank you very much for your help. Just to clarify, do I not put any actual petrol expenses etc.. through the company? All goes through on my personal tax return only?
Yes, if you receive a travel allowance and the expenses all go through your account then you are able to claim these expenses when you claim against the travel allowance.