Apportion an expense

Allan_10136328
Allan_10136328 Member Posts: 4
edited April 2020 in Reckon One
I'd like to know the recommended way to apportion an expense. EG. Purchase fuel for car. 60% of that fuel is for business and the other 40% is personal non taxable. Do I enter in all the fuel and other car expenses and journal the private use part each quarter or should I do it for each transaction. There does not seem to be any onboard calculator to help with this so thinking the former is the best bet. What does everyone else do?  

Comments

  • Kwikbooks (Professional Partner)
    Kwikbooks (Professional Partner) Member Posts: 824 ✭✭✭
    edited April 2020
    Hi Allan

    There is no correct way, it depends on your business & preference, guided by your accountant.

    For micro/small business where your vehicle is 100% business deduction like ute, then claim 100% of everything.

    If you use your regular car for business, most small business log klm travelled and claim these back.  You only have to do a log book for 3 months and can use this as an average for 12 months.  Klm $ will depend on size of vehicle's engine. You pay all the car expenses personally.

    Or you can use the % method, record the start & finish odometer reading, log your klm for 3 months for business. Work out your % of business klm to total klm travelled, and use this for your %.  Repeat the logbook average every so often or if you think your klm have increased.

    You will need some sort of log if audited to prove how you worked out you claim.

    I personally would enter the % on each expense as you went, especially if gst involved.