My friend is starting a new job where she will get a car allowance.
We would like to know how her weekly wage will work? Ie do they add the car allowance to the wage and then calculate the tax? For example
salary $75000
car $17000
total =$9200
and then tax deduction
thank you
Hiya @Cropperk 👋
When you say "car allowance" do you mean additional cash salary because the employee will be required to use their own vehicle for business purposes? As a flat amount each pay, like salary? In which case, yes, it is all salary and wages and taxed the same. Yes, the taxpayer is able to claim a deduction, with supporting evidence, for the amount spent for business purposes.
Deanne
Hiya @Cropperk 👋
When you say "car allowance" do you mean additional cash salary because the employee will be required to use their own vehicle for business purposes? As a flat amount each pay, like salary? In which case, yes, it is all salary and wages and taxed the same. Yes, the taxpayer is able to claim a deduction, with supporting evidence, for the amount spent for business purposes.
Deanne
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