Workpapers

Shared vehicle use

A shared benefit occurs when an employer provides one benefit that is shared between two or more employees.
To share the taxable value of a car, you enter the full details for the vehicle in the Vehicle worksheet. This information is used to calculate the taxable value for FBT payable purposes. You also the drivers in the Shared Usage tab details to allocate the taxable value of the vehicle to 2 or more employees for their
private
 usage of that vehicle.
note
Do not enter shared usage which is business-related. In other words, enter only the private use when allocating usage of a vehicle. Enter business-related shared use days unavailable for private use.

Enter Shared Vehicle Use

  1. Enter each car's details in the Vehicle workpaper; you must ensure there are sufficient details entered for a car to allow calculation of a taxable value.
  2. Indicate that the car is shared using the
    Shared Car?
     (Y/N) column.
  3. Indicate the sharing
    Allocation Method
    .
  4. Once the taxable value and FBT payable are calculated for each ‘shared’ vehicle in the Vehicle workpaper you can begin to allocate these cars to the drivers in the
    Shared Usage
     tab.

Allocate Vehicle use based on days or dates

When using the statutory method of valuing car benefits, sharing a car using the date range or number of days methods is limited to the days the car is available for private use. Any value in the
Days Unavailable for private use
 column on the
Vehicle Details
 tab reduces the days the car is available for private use. This reduces the range of dates or days you can use to share the car's usage.
Date Range Allocation method
When there is a single driver for a shared vehicle
,
the system attempts to fully allocate the driver to the entire date range so that the amount in the
Unallocated %
 equals 0.00. Changing the
Days Unavailable for private use
 column changes the
Allocated Start Date
 to the start of the holding period and allocated end date to the maximum available days possible in the FBT year and taking the days of unavailability into account.
If the vehicle has more than one driver, a validation message will appear if the allocated date range exceeds the available days. You will need to adjust the days or date range allocations manually to fit within the maximum available days possible in the FBT year taking into account the days of unavailability

Allocate drivers to the shared car in the
Shared Usage
 tab

You can use various allocation methods such as days, kilometres or percentage (The allocation method must be 'elected' in the Vehicles Details tab)
  1. Open the
    Shared Usage
     tab.
  2. Select the appropriate registration from the drop-down list.
  3. Enter the employee's details or select them from the drop-down list.
  4. Enter the employee's private allocated use amount.
    • You can use various allocation methods such as days, kilometres or percentage
    • The usage values will need to give an allocation that is fair and reasonable
As you enter more rows for a car the sharing is done automatically based on the allocated use you enter.

This article applies to:

  • Product: ONESOURCE Fringe Benefits Tax
  • Subject: Workpapers