- 31 March 2021
- Posted by: runningthenumbers
- Categories: Accounting, Fringe Benefits Tax, Tax
Fringe Benefit Tax (FBT) applies to benefits to your employees that are additional to their salary or wage, such as personal use of a company vehicle.
Remember – you may very well be these employees we are referring to if your business runs through a company or trust and owns your business motor vehicle!
Make sure you have your records in order, to take advantage of exemptions that might reduce your tax bill. We also recommend keeping a logbook for 12 weeks so that we can ascertain your business use and minimise if:
– you haven’t already kept a log book,
– haven’t kept a logbook in the last 5 years; or
– your pattern of usage has changed
The Fringe Benefit year is 1 April to 31 March. In order to accurately account for your motor vehicle use, remember to take an odometer reading for the FBT period ending March 31st.
FBT lodgement and payment is due 21 May (or 25th June for electronic lodgements through us, as your tax agent).
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