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.
Profit vs Cash
What is the difference between profit and cash? Why do we see profitable businesses run
Keeping the Cash Flowing
Five principles that you need to have as the foundation of your business, to ensure
7 Key Causes of Poor Cashflow
The 7 Key Causes of Poor Cashflow – often something that has been neglected and
The 5 A’s of Change
We love to watch our clients grow and develop. From starting out to being confident
The Cash Conversion Cycle
The Cash Conversion Cycle – An incredibly important notion to understand in the economic environment
4 Leadership Quadrants
What is your leadership style? Do you even have one? We can use the 4
The Ceiling of Complexity
So, you’ve hit The Ceiling of Complexity – We think that by holding back from
The Achiever Matrix Mindset
The Achiever Matrix is a useful tool that allows you to identify what tasks take
The OPPS Mindset
All too often we find ourselves in situations where someone needs our help, and we
Seven Ways To Grow Your Business
Learn about the different ways you can grow your business.