Floyd Business Services

Use a car for work? 🚗

You can claim a deduction for work-related trips as long as you have a record to prove it. There’s no 'maximum kms with no records' rule - that’s fake news.

You’ll need to show that you own or lease the car, that you spent the money yourself and weren’t reimbursed, and how you’ve calculated your work-related kilometres. The easiest ways are to keep a diary or use the myDeductions tool in our app.

Work out your deduction using one of the 2 methods per car - Cents per km or Logbook method.

Do you use your private motor vehicle for work purposes and claim it as a tax deduction? There are different methods available to calculate the deduction based on the number of 'work related' kilometres you travel during the year. The Cents per Kilometre method is the simplest if your work kilometres are less than 5,000 during the year. However there are substantiation requirements that must be adhered too. If you need further information please contact me.

Tax time is around the corner

Tradies, you can claim various tax deductions to reduce your taxable income. Here are some key deductions you may be eligible for:

Vehicle Expenses: Claim costs for running your vehicle for work, including fuel, insurance, and maintenance. You can use either the cents per kilometre method or a logbook method.

Protective Clothing and Equipment: Deduct costs for safety gear, such as helmets, gloves, and sun protection items, if required for work.

Tools and Equipment: You can claim the cost of tools and equipment used for work, with specific rules for tool sets and depreciation.

Work Uniforms: If required for your trade, you can claim the cost of a compulsory work uniform with a business logo.

Overtime Meal Expenses: If your employer provides an overtime meal allowance, you can claim expenses incurred for meals during overtime work.

Make sure to keep all receipts and records to substantiate your claims. Contact me if needed to ensure compliance with tax laws or assistance with your tax compliance.