Vehicle expenses

A regular question for Smart Books® founder Leaine Jones is how and what vehicle expenses can be claimed. It depends! Some things to consider:  
  • Is the vehicle totally, mostly, or less frequently used for the business?
    Gauging the proportion of usage assists with deciding what expense claim method you should use.
  • Who owns the vehicle? – is it in the name of a person, or the business?
    Depending on whether you are self-employed, a partnership, company or other entity type to what you can do.
  • If principally for work do you have this noted on your insurance policy? Commercial vehicle insurance can cost more but you need to make sure you are fully covered. Check with your insurance provider.
  • Recording a logbook can be a hassle. There are software apps you can try to make it easier. If you like this idea try them out!
  • Driving to and from home to work is not always deductible. Find out what applies to your situation.
  • Is the vehicle of a high or low market value? This may guide your decision on the best option.

Inland Revenue outlines the options here.

Checking with your accountant will help you decide on the best option as well as making sure you are compliant.

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