I would like to maintain an accurate log but am struggling with determining what qualifies as allowable business mileage.
I work mainly from my employer’s office but use my personal car to see customers and suppliers, but do not get compensation from my employer. If I see a customer/supplier on my way to the office in the morning, does that leg count as 100% business mileage or does the leg from the customer/supplier to the office? Or does it only count as business mileage if I go to the office first and then visit the customer/supplier and then return to the office?
Can you please advise?
Business mileage is sometimes not cut and dried. First, for you to be able to claim the mileage, your employer needs to complete the form T2200 Declaration of Conditions of Employment. Once this is completed, you are then able to claim your mileage.
Travelling from your home to the office is not considered business travel, but personal. But in saying that, if you go to a customer or supplier on the way to the office that would be considered business mileage. You have one of two ways to keep track of this: you can use the whole trip and then deduct the mileage used from office to home, or just use the mileage from the customer/supplier to the office (times 2 for a round trip – this one is easier to use, in my opinion).
When calculating the actual expenses deductible, remember to use all the expenses of the car for the full year, including, gas, maintenance, and parking if any, and then it is prorated between business and personal. Also, I would keep some sort of diary (either a planner in the car or electronic record) of the trip and who you went to see. Also, the proration is total km driven for business divided by total km driven in the year.