A truck driver’s accounting needs differ from those of other businesses. For one, you have many unique federal and provincial regulations to follow.
Not everyone will be familiar with that. Is your accountant? Additionally, financial obligations for trucking are quite time-sensitive and deadline-driven. Does that make you nervous?
Undoubtedly, if you’re an owner-operator or incorporated truck driver, you’re making an effort to adhere to WSIB regulations. Let’s quickly go through some tax advice you should be aware of to prevent the most common WSIB compliance mistakes.
In our first guide to truck-driving business accounting, we discussed: incorporating, unique WSIB regulations, meal allowances, and purchases with corporations.
5. Make Use Of The Allowance For Personal Vehicle Mileage
This is another non-taxable advantage you can receive and deduct as a business expense for the corporation. Track the kilometres you ventured in your personal vehicle — not the truck equipment. If done properly, you’ll receive reimbursement, tax-free.
This is great because you probably find yourself making short drives in your personal automobile while acting as an employed truck driver or owner-operator.
For example, while visiting:
- Truck parking lots
- Banks
- Your accountant
These kilometers are still claimable because they are business-related.
6. Claim Office Expenses If You Work From Home
Most incorporated truck drivers and owner-operators work out of part of their house to keep records and do other office-related tasks. A percentage of your living expenses can be written off, and you can get a tax-free reimbursement.
7. Remember To Subtract Your Cell Phone Bill
Part of your cell phone bill can be written off if it serves your truck-driving business. Again, this is a tax-free benefit for your corporation. Think about registering a phone with the corporation so the corporation can pay the bill.
8. Always Have A Notepad In Your Truck
If you can’t get a receipt for an expense, you need to be able to record it in this notebook. For instance, imagine you’ve just washed your truck at a coin-operated service.
To comply with CRA requirements, you must keep note of the date, place, and sum — plus, you have to write a justification for each expense. Even your accountant will need these records from you, typically monthly, in addition to receipts.
Your ELD Is Tracking Expenses — Can’t You Use That?
Trick question. The electronic logging device (ELD) will automatically record information like driving time, odometer readings, and whenever your engine powers up. Commercial drivers are still required to enter more information than the ELD records. For example, the time you spend fueling, loading, and unloading.
Therefore, you’ll want to write that down. Pair this with an envelope for when you do get receipts. As a backup plan, use your phone to take a picture and type memos.
9. Maintain A Copy Of Each Logbook
Your strongest evidence that you’re eligible for per diem costs is your logbook and electronic log records. Make sure you can save and access your history, especially if you only use your ELD to keep track of your business as a truck driver. In any case, know this is a must for inspections.
10. Have A Financial Expert Backing You Up
Our accountants have financial expertise in the trucking sector; after hearing about your particular situation, we’ll work with you to develop a road map.
For a free assessment of your trucking company, get in touch with us right away.
