• Tax Angel - Debbie

Work Related Car Expenses... the lowdown

Work related car expenses: Here is the low down - As a general rule, travel from your home to your workplace is not allowed as a deduction because it constitutes a “private expense”. There are however specific situations where this rule does not apply, and there can be circumstances where you may be entitled to claim some of the travel expenses between your home and your regular workplace, or even your alternative workplace. But it is a minefield that needs to be treaded carefully so as to not end up in hot water with the taxman. What constitutes a deductible ‘travel expense’? Individuals are typically able to claim a tax deduction for work-related travel expenses. You can generally claim the cost of travelling: directly between two separate workplaces – for example, when you have a second job (providing one of the places isn’t your home) 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 – you were required to start your work at home and travelled to a workplace to continue your work for the same employer if you had shifting places of employment – you regularly work 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. This does not apply where the alternative workplace has become a regular workplace if you need to carry bulky tools or equipment that you used for work and can’t leave it at your workplace – like an extension ladder if you’re a tradesperson or a cello if you’re a musician.

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