What is a Car Fringe Benefit?
|A car fringe benefit can occur when an employer makes a car they own or lease available for the private use of an employee. If you conduct your business through a company or trust, you may be an employee of the company or trust.|
Are any of your business cars being used privately by an employee?
When a non-cash benefit (like the use of a car) has been provided to an employee, your business may be liable to pay Fringe Benefits Tax (FBT).
You can calculate the taxable value of your Car Fringe Benefit using either the Statutory Formula Method or the Operating Cost Method.
But that’s our job!
Your job is to provide the following information for each business vehicle as soon as possible, after 31 March 2014.
Vehicle Registration Number; Vehicle Description; Vehicle Make/Model/Year; Odometer Reading as at 1 April 2013; Odometer Reading as at 31 March 2014 and Business Use Percentage (as per log book). Be aware that you need to have a valid log book to substantiate your business use.
This information will help us to work out;
- which method yields the lowest taxable value
- reduce your FBT liability to nil; and
- ensure you keep adequate FBT records.
MB+M is happy to help you with your queries. Give us a call on 5821 9177 to find out how we can help you with FBT.