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Re: FBT query - motor vehicle travel classed as business or private

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Hi

 

I have a client who has an employee who lives 400km away from the place of employment. He is provided with a vehicle and it is stated in his contract that he is to travel to his place of employment every second week. Is this travel classed as business or private for log book purposes?

 

Regards

Alex

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Hi @AlexJayne

 

Travel in order to commence work is private. The employee incurs the expenses to be in the position to start work. It is not an expense incurred in the course of working. The travel costs are a private expense.

 

We talk about this on transport expenses - trips between home and work. Take a look at the examples - there are a few which might fit and help differentiate Smiley Happy

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Hi @AlexJayne

 

Travel in order to commence work is private. The employee incurs the expenses to be in the position to start work. It is not an expense incurred in the course of working. The travel costs are a private expense.

 

We talk about this on transport expenses - trips between home and work. Take a look at the examples - there are a few which might fit and help differentiate Smiley Happy

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@BlakeATO Thank you for your response - I thought that would be the case but wanted to confirm. :-)