This article describes a way you can record business purchases which contain a private use component.
The example we'll use in this article is where a vehicle is used for 80% business purposes ...
Updated 9 years ago
Version 7.0
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Support Note Guy,
An method used by a Business Owner/Bookkeeper/BAS Agent to record Motor Vehicle Expenses should be developed in consultation with the Tax Agent.
My understanding is that the ATO allows an Annual Election for GST on private apportionment.
This may well be the easiest.
Whether the entity is a Sole Trader or a Company, it is important that the Motor Vehicles Expenses Ledger reflects 100% of the Spend.
A Sole Trader should have a negative expense ledger called MVE - Personal.
A Company should have a Income Ledger called MV Contribution by Director.
All Ledgers are coded GST.
Hope this helps.
Duncan Smith
Business Advice + Tax