The first thing that needs to happen is the business needs to own the vehicle. If you own the vehicle already, you need to transfer the ownership to the company or if you’re buying a new vehicle, the company needs to buy the vehicle.
This means the company can pay for:
- Claim depreciation on the vehicle.
Next, once the company owns the car, you have to signwrite the car with your branding. Go loud, go proud and get your car wrapped.
Finally, Fringe Benefit Tax can apply as there are certain rules and regulations that apply if your company owns the car. You need to minimise these payments or ensure you’re not paying FBT if you don’t have to. Alternatively you can adjust the amount you claim for the personal v business use of the car. If you use your car 70% for business and 30% personal, you can claim 70% of all the motor vehicle costs.
Watch the video below to hear from Jason about how your business can pay for your car.
Let’s recap on the key things you need to do for your business to pay for your car:
- Company needs to own it
- Needs to be signwritten
- Understand how Fringe Benefit Tax applies or personal use adjustment.
Get in touch if you have any questions.
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