Can I claim my car?
“Can I claim my car?”
This is a question we are asked every year during tax time so this Blog will hopefully answer any questions you may have.
To be able to claim the cost of travelling you must use your car for work related purposes. For example:
- travelling between two separate workplaces – when you have a second job from your normal workplace to an alternative workplace (for example, a client’s premises) while still on duty, and back to your normal workplace or directly home;
- if your home was a base of employment – that is, you started your work at home and travelled to a workplace to continue your work for the same employer;
- if you had shifting places of employment – that is, you regularly worked at more than one site each day before returning home;
- from your home to an alternative workplace for work purposes, and then to your normal workplace or directly home
- if you needed to carry bulky tools or equipment that you used for work and couldn’t leave at your workplace – for example, an extension ladder or a cello.
There are some simple rules that apply in carrying bulky tools such as:
- you need them to be able to perform your job
- your employer expects you to transport your tools
- there is nowhere secure to store your equipment at work.
If you carry tools for work the ATO may ask you to prove that this is a requirement from your employer.
We hope this has given you some answers when considering if you can claim your car in your next tax return. If you are ever unsure of if you can make a claim we at The Money Edge, are always available for questions.
Keep an eye out for other blogs on ways you can claim your motor vehicle in your tax return coming soon!!!
Ally Wadwell | Accountant | The Money Edge | Bundaberg