Home – New Forums Money matters Director Reimbursement – Petrol

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  • #986309
    heretolearnbusiness
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    Hi Everyone!

    I incorporated a company recently and I am the sole director.
    I have no employees apart from myself, but am yet to pay myself a wage.

    I currently pay for petrol from my personal savings and wish to get reimbursed from the company.

    How is the best way to go about this?

    I have been keeping a log book for business travel; however do I just wait till tax time and as an individual claim my usage on tax? Or preferably can I get reimbursed by the company.

    I appreciate the feedback in advance!

    #1157210
    Dave Gillen – Former FS Concierge
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    Hi there,

    Not sure about that one myself, but I’m sure we’ll have some good advice for you shortly. In the meantime, I just wanted to welcome you to Flying Solo!

    Dave

    #1157211
    LucasArthur
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    Howdy heretolearn

    Re petrol and expenses and business set up etc, and although i am not studied in accounting practices, my personal advice would be to speak with your company accountant (whomever you are using to do your books) in order to approach this the best way that will suit both your business and personal situations.

    As we do not see your entire picture of assets in the business and your personal life, operating processes and the likes it may be difficult for someone on the forum to outlay what is best for you…

    There are a few ways you can do it…
    a. pay the petrol yourself from your $$ and then with the books for the business enter it as ‘petrol expense’ paid via ‘advance from owner’ so it shows as a debt in the form of a loan from you to the business

    b. claim on your personal tax.. although i can not personally see the advantage of this myself as you are the business by the sounds of it?

    c. pay for it from the businesses money, if there is money in it at point of purchase.

    I know its not directly helpful, and i am sure some enlightened tax experts will add to this, although it may provide some starting points..

    Cheers
    Jason ;)

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1157212
    heretolearnbusiness
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    Thanks Jason!

    I appreciate the feedback!

    In regards to your answer (a)
    Yes i have been paying out of my personal pocket, but in regards to reimbursing myself. How do i do this? Do i calculate the business driving portion and then reimburse, or reimburse the whole amount (the majority of my driving is for business)

    And then in regards to your answer (c)
    I want to pay it from the business money from now on, however tying in from question/answer (a), when i pay for petrol using business money, what if 10% was personal driving…

    I know you may not have the exact or right answers, but i am interested in your personal thoughts.

    The car a drive is a personal car and is not owned by the business.

    #1157213
    LucasArthur
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    Ah,

    Ok, so your question is more about “how MUCH can i claim” more so than the physical processing of it? my humblest apologies.

    Personally, i do not have that answer as it will be entirely how you do the books etc etc and what your accountant would want to do with them as well.. However, as a business owner i can not see why you would not claim 100% of this cost or rego or maintenance (whether it is registered to business or not)… If you were an employee (not related to business) i can see why you would be isolating the personal use from the business use as you would not want to be paying an employee for ALL COSTS, but its YOUR car not an employees…

    Seek tax advice though, but i personally would be paying it ALL from the business… I know this advice must be taken with a grain of SALT and some tax gurus will through virtual cuffs on me and ban me from doing my own books.. but…….

    Cheers
    Jason ;)

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1157214
    heretolearnbusiness
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    I would love to see your log book Jason haha.

    #1157215
    LucasArthur
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    heretolearnbusiness, post: 181296 wrote:
    I would love to see your log book Jason haha.

    My books are ok…. Our vehicles are for business use (and personal sometimes), treat it a bit like a reps car with a lil FBT involved…. like a side of fries… But, again, your tax adviser will be best suited for this and our guy does keep a clean account of EVERYTHING.. he is extremely pedantic 😮 and has me running errands all the time to increase my log book entries :D

    Cheers
    Jason ;)

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
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