Multiple Company Cars
There are many businesses and professionals who own a car on business name. These cars are used by business owner, employees, family member or their associates. Buying the car in the right structure and finance options could save you thousands of dollars. On the contrary, if not structured properly, it can be very expensive for the business.
There are many benefits available when a car is owned by the company such as claim GST on expenses. At the same time, there are several compliance requirements that need to be met when the car is owed by the company such as declaration by the user of the car for the business and private use of the car, log book and many more. We at Medvisor Consultants discuss and educate client to understand the complexity and the benefits of either buying the car on business or individual name.
Questions client ask very often:
- To buy a car on business or individual name?
- What should be the business name on the purchase and finance contract copy?
- How many cars a company can own and claim deduction for the expenses in the business?
- What type of finance option if better such as Chattel Mortgage Vs Novated Lease?
- Can my business or I benefit if I buy a car for my wife and kid?
- When is car considered to be available for private use if I run my business / professional practice from home?
- What is Fringe Benefit Tax (FBT)? When do I have to pay? Do I have to pay on parking?
- Log Book: For how many weeks I have to maintain and how long it is valid for?
If you are thinking or in the process of buying or already own a car on business name but not sure of the ATO compliance requirements then then contact our office. We highly recommend that running a business with right structure and advice saves tax, money and reduces risk of penalty from the required governing body.
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