News, Tradie Business

Are your tradie taxes squeaky clean?

That new work ute your employee is driving? It might just put you on the ATO’s radar.

Providing a work vehicle can be a great perk to attract talented tradies. But if they also use it for school drop-off and weekend trips, you might unknowingly be dodging your fringe benefit tax (FBT) obligations.

Though commercial vehicles don’t attract an FBT, this only applies if “private use of the vehicle is limited”. This could be bad news for small and medium-sized business owners who provide dual cab utes to their tradies.

These trucks are popular with tradies—and families. It could be tempting for your employees to load up the work ute for weekend camping trips, Saturday sport, or the weekly big shop. If not correctly declared, your business could be on the hook for thousands of dollars in tax and find yourself in the middle of an ATO audit.

Tomasz Zajda/stock.adobe.com

Managing a tax audit with insurance

It might have been sparked by an innocent mistake, but a tax audit is serious business.

Businesses typically need an external accountant or tax agent to sift through their books and respond to the ATO, which can be a costly exercise. That’s where Tax Audit insurance* could help.

An optional cover available through a Business Insurance Pack*, Tax Audit cover can help you pay accountant and tax agent fees if you’re investigated by the Australian Tax Office.

Of course, Tax Audit insurance doesn’t cover fines or taxes you may need to pay after the investigation—so make it crystal clear to your tradies when they can and can’t use that ute!

Protect your business on the go

BizCover makes it easy for busy tradies to protect their small businesses online. Compare multiple quotes in minutes, and see if you can save on Tax Audit, Public Liability, and other cover for your tradie business.

Jump online and visit bizcover.com.au, or give us a call today.

*This information is general only and does not take into account your objectives, financial situation or needs. It should not be relied upon as advice. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording.
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