Truck driver

Truck drivers: work-related expenses

To claim a work-related deduction:

• you must have spent the money yourself and weren’t reimbursed
• it must be directly related to earning your income
• you must have a record to prove it.

If the expense was for both work and private purposes, you can only claim a deduction for the work-related portion.

Deductions for truck drivers can include:

• Meal expenses
• Car expenses
• Overnight travel expenses
• Clothing expenses
• Phone expenses
• Other expenses
  • Retraining ropes
  • Sunglasses, sunhats and sunscreens
  • Union and professional association fees

Record keeping

You can claim a deduction without keeping all your records if:

• you receive a travel allowance that could reasonably be expected to cover your meals when travelling (a token amount you receive as a travel allowance is not accepted as reasonably covering such costs)
• you claim up to the reasonable allowance amount.

If the ATO ask you to explain how you worked out amounts you claimed or if you claim more than the reasonable amount per meal when travelling, you need to keep the following records:

• payment summary or payslips to show the travel allowances you received
• work diary, or other fatigue documentation which shows the days you travelled for work including start and finish times, where you travelled to, and when you stopped for meals
• all receipts or invoices for every meal showing the name of the supplier, the amount you spent, the nature of the good or service, the day you spent the money, and the date the receipt or other written evidence was made
• written evidence to show that you were the one who spent the money. If you travel the same route regularly, and have a regular pattern of expenditure, we accept written evidence for a three-month representative period.

Reimbursements

If your employer or any other person reimburses you for expenses you have actually incurred, the payment is called a reimbursement. A reimbursement is not considered to be an allowance.

You cannot claim a deduction for expenses you incur if those expenses are reimbursed to you by your employer and you do not need to include reimbursements on your tax return.

Remember to report all income in your tax return and remove any portion of your expense that is not work-related.

When you claim a deduction, you are stating that everything you have told us is true and can be supported with records. You are responsible for the claims you make in your tax return, even if you use a registered tax agent to prepare and lodge it on your behalf.

Thinking of starting a freight business?

Starting a business is a bit like building a house that requires solid foundation. In a business sense these foundations include the right tax structure and accounting software, adequate and appropriate insurances together with a marketing plan and a lead generation website. Your choice of business structure is absolutely critical and there are a number of different options including sole trader, partnership, company and trust.

Whenever we provide advice on business structures we always take into account:

• Income Tax Minimisation
• Maximize Asset Protection
• Allow for the Admission of New Business Partners or Investors
• Comply with all Legal Requirements in your Industry
• The Risk Profile of Your Industry
• Consider Future Entitlement to Discount Capital Gains Tax Concessions

Freight businesses are one of our specialist client groups and having mentored a number of business owners through the start-up phase of their business we have built a reputation as business start-up specialists. If you are looking to start a business as a freight forwarding company or buy into an existing business, there are numerous issues to consider. It can be a maze of issues but as accountants and business advisors we can assist you in all of these areas plus provide advice on the preparation of a business plan, marketing plan and a cash flow budget.

We will help you understand the ways to grow a business plus identify the key profit drivers in your business. We can walk you through a number of profit improvement strategies and even quantify the profit improvement potential in your business. Our role is to make sure you know your numbers and don’t leave any profit or tax savings on the table.

The freight industry is challenging but can be very rewarding. All business owners need to budget, plan, and monitor their business’ performance. We know the pitfalls of freight industry and look forward to working with you to build your business and grow your wealth.

In summary, we strive to deliver practical, timely and cost effective advice that could give you a serious competitive edge in your industry. Contact us now to arrange the first free 1/2 hour meeting to discuss in details.