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Car allowance

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Newbie

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I get a car allowance for using my own car for my home care job and the amount I get on each pay slip is classed as non-taxable, my last 3 pay slips has the car allowance now as taxable. Was just wondering if I can only get a certain amount of car allowance each year as non-taxable before it becomes taxable. Thanks
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HI @Ipottsta ,

 

As per 2020 tax return - Item 2 ,usually allowances including car allowances are assessable income , and need to be included in your tax return (perhaps your employer made a mistake in initially recording them as 'non-taxable'). There is no threshold for allowances that changes them from non-taxable to taxable.

 

There may some eligibility in your circumstances to claim the work use of your vehicle(as a deduction) - see Car and travel expenses 2020.

 

Hope this helps,

1 REPLY 1
Highlighted

Most helpful response

Community Support

Replies 0

HI @Ipottsta ,

 

As per 2020 tax return - Item 2 ,usually allowances including car allowances are assessable income , and need to be included in your tax return (perhaps your employer made a mistake in initially recording them as 'non-taxable'). There is no threshold for allowances that changes them from non-taxable to taxable.

 

There may some eligibility in your circumstances to claim the work use of your vehicle(as a deduction) - see Car and travel expenses 2020.

 

Hope this helps,