Company Car - Deducting Costs eg Wash and Clean

Peter Pan is a sale rep for Hook Enterprises Pty Ltd and has a employer provided company car. Employer pays FBT etc.

Peter has out of pocket costs for cleaning, washing and keeping the car looking good and approaches his tax adviser seeking to claim these costs which are around $1200 a year. How much can he claim ?

Nothing.

FBT has a specific rule that allows Peter to inform his employer of the costs he has paid and the employer can reduce the FBT they pay as part of annual operating costs. This same rule prevents Peter claiming any deduction for the employers operating costs for the car.

Many employers fail to ask employees about these costs. In April each year Peter should ensure he advises the employer. Alternatively if the employer can reimburse Peter he may be even better off.

 

An old accountant told me once there was a brothel that had a name that made it sound like a car wash - wax n wash - or similar. They issued a receipt worded in such a way that people were claiming it as a tax deduction, or reimbursement perhaps, for company cars.

 

Nice one.

ATO: datto you're claiming a 12K deduction for spit and polish. How can you substantiate such a claim?

datto: Will the videos suffice? lol

 

Spit and swallow car wash pty ltd.

Too long. For some its a mouthful

 

Good news Spit and Swallow is available! had to do that company search in privacy!

Collapse Business Name Summary
Business Name Summary
A basic overview of free information that can be downloaded or viewed in PDF form.

Name: THE SPIT AND SWALLOW
Registration number:
State of registration:
Registration date: 15/05/2014
Status: Cancelled
Type: Business Names
Principal place of business:
Regulator: Australian Securities & Investments Commission

 

Too late, last night I started up rub and polish pty ltd.

 

Problem with that business name - Its a mouthful.