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Thread: Tax Deductions

  1. #1
    Gold Member Singhms's Avatar
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    Tax Deductions

    Hello All,

    With regards to tax deductions\expenses of a business.

    As I am just starting out I have my car in my name and the insurance policies for them as well as my cellphone accounts, etc...

    As I will be using my car and cellphone for business can these be deducted as expenses even if they not on the business name ?

    Thanks in advance

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    Site Caretaker Dave A's Avatar
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    Are you trading as a sole proprietor or is the business a seperate legal entity?
    The trouble with opportunity is it normally comes dressed up as work.

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    Gold Member Singhms's Avatar
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    Hi,

    Seperate legal entity, CC.

    Thanks

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    Site Caretaker Dave A's Avatar
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    Structure your pay package to include a car allowance that covers the bills and keep a log book.

    For the cellphone, I recommend you get the account changed into the CC's name.
    The trouble with opportunity is it normally comes dressed up as work.

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    Email problem derekjay's Avatar
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    Alternatively, depending on the tax-efficiency thereof, you may want to have the company pay "Right Of Use Of Motorvehicle" - this is a tax amount paid based on the value of the car, which allows you to make all vehicle related expenses from the company (petrol, servicing, repairs, etc). May be worth consulting your accountant.

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