This is a question directed towards tax accountants.
I run my own bookkeeping business for which I have quite a few small clients who pay their own bills and I come along and record the entry after the transaction has occurred.
I am continually faced with the problem of businesses (for the sake of discussion, lets say pty ltd companies) paying running costs and petrol for vehicles owned by employees
. These vehicles commonly have a large personal use %.
My understanding is that if they are doing this, then the company should be lodging a FBT return.
What gets even more complicated is that I have clients who are paying some running costs from the business and some the employees are paying personally. e.g. the employee has a company fuel card yet the employeee is paying for servicing. I even have some clients where the business is paying for the servicing direct to the suppliers and the employee is paying the fuel personally.
What is the best way to recod these entries. I have been coding all these expenses to motor vehicle expenses and informing the clients tax accountant of what has happened so they can make a decision of weather a FBT return needs to be lodged.
Most clients don't want anything to do with a FBT return. To avoid a FBT return needing to be produced is there something else I can do. I am thinking along the lines of gathering all these expenses together and moving them to travel allowance paid and putting them on the employees PAYG summaries.
Hoping someone can point me in the right direction.
Shane Holbeck - Accountix www.accountix.com.au