Do I have to pay FBT on my workhorse vehicle (think utes, vans and taxis)?
Well it depends.
There has and still is an exemption for private use that is minor, infrequent and irregular.
The problem is the ATO recently announced safe harbour provisions. And those safe harbour provisions are probably more restrictive than what most people think.
These provisions also dictate record keeping that wasn’t required previously.
Want to know more – then click on the following link.
Why is this important?
Well if any private use doesn’t satisfy the safe harbour tests to minor, infrequent and irregular travel then the business is subject to Fringe Benefits Tax.
And this leads to the next point of how important it is to lodge an FBT Return (even if no FBT is payable). Lodging and FBT Return starts the audit clock ticking. When three years have passed, the ATO can’t go back and audit that year. Don’t lodge a FBT Return and they can go back as far as they like.
Not sure about your exposure? Don’t want to risk not complying and paying FBT 9and penalties and interest)? Then call us.
At MRS, we will spend today planning for your success.