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Drive car owned by someone else for work purposes

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Initiate Registered Tax Practitioner

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Replies 4

Drive car owned by someone else for work purposes. I know you can claim fuel costs.

If I know km travelled for work purposes, can you use cents per kilometre method or some other rate per km travelled?

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Community Support

Replies 3

Hi @TC8

 

If you are an employee:

 

Car and travel expenses 2020

 

'Work-related car expenses' and 'work-related travel expenses' are expenses you incur in the course of performing your job as an employee. You claim deductions for them at items D1 and D2.

 

D1 Work related car expenses 2020
You cannot claim at this item any expenses relating to a car owned or leased by someone else, including your employer or another member of your family. However, we consider you to be the owner or lessee of a car and eligible to claim expenses where a family or private arrangement made you the owner or lessee even though you were not the registered owner. For example, you can claim for a car that was given to you by another member of your family and which, although it was not registered in your name, you used as your own and for which you paid all expenses.

 

Under this item (D1), if you are eligible to claim:

you can choose which method to work out your car expenses. You can use the one that gives you the largest deduction or is most convenient. The two methods are:

    cents per kilometre
    logbook.

 

However, if your vehicle is not a car:

You cannot claim at item D1 any expenses relating to motorcycles and vehicles with a carrying capacity of one tonne or more, or nine or more passengers, such as utility trucks and panel vans. For these vehicles See D2 Work-related travel expenses 2020.

 

Under D2 Work-related travel expenses 2020:

If your employer provided a car for your or your relatives' exclusive use (including under a salary sacrifice arrangement) and you or your relatives were entitled to use it for non-work purposes, you cannot claim a deduction for work-related expenses for operating the car, such as petrol, repairs and other maintenance. This is the case even if the expenses relate directly to your work. However, you can claim expenses such as parking, bridge and road tolls for a work-related use of the car. Parking at or travelling to a regular workplace is not ordinarily considered to be a work-related use of the car.

 

If you received a travel allowance there is also information under this item.


However, if you are not an employee but you instead have a business:


- where the car is owned by someone else, then see this similar post.

 

I hope this assists you

 

Tracey

4 REPLIES 4
Highlighted

Most helpful response

Community Support

Replies 3

Hi @TC8

 

If you are an employee:

 

Car and travel expenses 2020

 

'Work-related car expenses' and 'work-related travel expenses' are expenses you incur in the course of performing your job as an employee. You claim deductions for them at items D1 and D2.

 

D1 Work related car expenses 2020
You cannot claim at this item any expenses relating to a car owned or leased by someone else, including your employer or another member of your family. However, we consider you to be the owner or lessee of a car and eligible to claim expenses where a family or private arrangement made you the owner or lessee even though you were not the registered owner. For example, you can claim for a car that was given to you by another member of your family and which, although it was not registered in your name, you used as your own and for which you paid all expenses.

 

Under this item (D1), if you are eligible to claim:

you can choose which method to work out your car expenses. You can use the one that gives you the largest deduction or is most convenient. The two methods are:

    cents per kilometre
    logbook.

 

However, if your vehicle is not a car:

You cannot claim at item D1 any expenses relating to motorcycles and vehicles with a carrying capacity of one tonne or more, or nine or more passengers, such as utility trucks and panel vans. For these vehicles See D2 Work-related travel expenses 2020.

 

Under D2 Work-related travel expenses 2020:

If your employer provided a car for your or your relatives' exclusive use (including under a salary sacrifice arrangement) and you or your relatives were entitled to use it for non-work purposes, you cannot claim a deduction for work-related expenses for operating the car, such as petrol, repairs and other maintenance. This is the case even if the expenses relate directly to your work. However, you can claim expenses such as parking, bridge and road tolls for a work-related use of the car. Parking at or travelling to a regular workplace is not ordinarily considered to be a work-related use of the car.

 

If you received a travel allowance there is also information under this item.


However, if you are not an employee but you instead have a business:


- where the car is owned by someone else, then see this similar post.

 

I hope this assists you

 

Tracey

Highlighted

Initiate Registered Tax Practitioner

Replies 2

Just to clarify, This question is about travel expenses you incur in performing your work as an employee. Under D2 Work related Travel Expenses actual expenses, such as petrol, that you incur to travel in a car that is owned by someone else.

 

1. Do you need actual receipts or bank record of  actual petrol purchases?

2. If you don't have receipts or bank record can you use a calculated rate, based on fuel consumption, average petrol price and total travelled? 

 

Thankyou

 

 

 

 

 

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Taxicorn

Replies 1

@TC8 

 

Any D2 claim needs actual receipts for fuel to claim.

You can not claim cents per km nor use the method to calculate the fuel used by average fuel cost and fuel consumption.

 

Are you saying that you 'borrowed' this car?

 

 

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Initiate Registered Tax Practitioner

Replies 0

Yes car borrowed by client and client did not pay all expenses relating to vehicle. Note: Only paid for petrol.

 

Therefore, claimed in D2 with substantiation of actual receipts for fuel.

Thankyou