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kaushikkts(Newbie)Newbie
7 Jan 2025

Good morning


Hope you have had a wonderful holiday season.

 

I have two scenarios:

Scenario one: A person is working as an independent contractor for a company, receiving Motor Vehicle Allowance shown separately in his payslip and is claiming Motor vehicle expense for a car he is using for business that is not owned, leased or hired under a hire purchase but hired on a monthly hire basis.

Scenario two: The same person is also working as an employee of another company, also receiving Motor Vehicle Allowance shown as rolled into his salary amount in his payslip and is claiming Motor vehicle expense for a car he is using that is not owned, leased or hired under a hire purchase but hired on a monthly hire basis.

My questions are:

In both scenarios, can he claim Motor Vehicle expenses based on: fuel costs, parking tolls etc. and

Can he claim them under D2 'Travel expenses'?

It is to note here that the expenses he is claiming are less than the Motor Vehicle allowance he has received.

I'm looking for answers to both scenarios please, as an independent contractor as well as an employee, thank you.

 

Kind regards

 

Kazi

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559 views
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Most helpful reply

Bruce4Tax(Taxicorn)Taxicorn
7 Jan 2025

In both scenarios, can he claim Motor Vehicle expenses based on: fuel costs, parking tolls etc. and

Can he claim them under D2 'Travel expenses'?


Car expenses can be claimed to the extent of provable car use for work, whether alloance paid or not.


D2 is for motor vcls that are not cars, so


Claim at D1 if car used as employee


Claim at business schedule if car used as contractor.


Best to go to a local tax agent if you don’t know what to do.


All replies

Most helpful reply

Bruce4Tax(Taxicorn)Taxicorn
7 Jan 2025

In both scenarios, can he claim Motor Vehicle expenses based on: fuel costs, parking tolls etc. and

Can he claim them under D2 'Travel expenses'?


Car expenses can be claimed to the extent of provable car use for work, whether alloance paid or not.


D2 is for motor vcls that are not cars, so


Claim at D1 if car used as employee


Claim at business schedule if car used as contractor.


Best to go to a local tax agent if you don’t know what to do.


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