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Chelle27(Newbie)Newbie
15 Oct 2024

I have a further question to this post 10 Sep 2021, with the same title, that has been archived and therefore I am unable to add my question: https://community.ato.gov.au/s/question/a0J9s0000001DtX/p00029718


@ALooP Question 1.0: I am a disability support worker and take clients out in my car, if I invoice clients for the km's travelled am I still able to claim these km's as a deduction?


I also drive from one client to another some days - am I able to claim these km's as a deduction?


Answer: Hi @ALooP

I assume you're working as a sole trader rather than an employee.

If you're charging your clients for travel, it just forms part of your business income, so you can still claim a deduction for travel, as long as at meets the rules for motor vehicle expenses.

:)


@ALooP Question 1.1: Hi Dan, yes it is working as a sole trader.

Also, am I right in thinking that the cents per Km method for my deduction includes cost for rego, insurance, maintainence, fuel and I can not add these as expenses as well?


Many thanks


Answer:

Hi @ALooP

If you use your car for work-related travel, such as taking client's out during the day, or traveling from one job to the next directly, you can claim these expenses.

You're right about the cents per kilometre method. If you use this method, you cannot claim any other costs (such as depreciation, rego, and so on) as these are accounted for using this method.

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@Chelle27 Question 2: If the above information is still current, as you cannot claim any other costs for travel using the cents per kilometre method, is this income included in business income and therefore subject to tax?

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WendyATO(Community Support)Community Support
16 Oct 2024

Hi @Chelle27,


The info you found is still current and correct.


Whatever, you have invoiced the client for as sole trader will form part of your business income. So, if you have included travel yes.


As a sole trader, your taxable income is your business income you invoiced the client minus allowable deductions. Such as the cents per Km method.


You only be taxed on the difference.


Check out expenses for a car you own or lease you may find helpful.

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Most helpful reply

WendyATO(Community Support)Community Support
16 Oct 2024

Hi @Chelle27,


The info you found is still current and correct.


Whatever, you have invoiced the client for as sole trader will form part of your business income. So, if you have included travel yes.


As a sole trader, your taxable income is your business income you invoiced the client minus allowable deductions. Such as the cents per Km method.


You only be taxed on the difference.


Check out expenses for a car you own or lease you may find helpful.

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Claiming kilometres as a deduction if I am charging clients for them (Updated to ask a further ?) | ATO Community