If you have a vehicle that’s only used for business you can claim all running costs as a business expense. If you use your vehicle for both business and personal trips you will need to work out the business proportion so you can calculate your deductible business expense.
Work out your business use
To work out your business use you can either keep:
- a logbook
- actual records.
You can keep a logbook to find out how much you usually use the vehicle for business.
Work out your deductible business expense
Once you know your proportion of business use you can then calculate your deductible business expense based on that proportion.
If your vehicle is petrol, diesel, hybrid or electric you can claim a deduction for your business expense using either the costs method or the kilometre method. You need to continue to use your chosen method for as long as you own the vehicle. If your vehicle is not petrol, diesel, hybrid or electric then you must use the costs method.