As an owner of KPC Group of Companies, a small Calgary business, I wanted to share with you some of the Canada Revenue Agency (CRA) rules surrounding vehicle mileage.  In regard to company vehicles and their usage within your company. It is likely you are doing one of two things:

1. Your company owns a vehicle that you drive for work.

If this applies to you – you must keep a mileage log for 4 months each year to track your personal km’s travelled. We have heard that CRA are now on the look out particularly for “stand-over” situations. This is when you drive the vehicle home each night from the work site and then back to the work site in the morning. These Km’s would be deemed personal Km’s travelled -UNLESS your office is actually a home based office. This would mean that you have a legitimate office in your home, that you operate your business from and that is the registered site address for your corporation. If you do use this vehicle for personal reasons – then the personal usage must also be recorded in the mileage log.

2. You own your vehicle personally – but you drive it for the work through your business.

In this case you HAVE to keep a Daily mileage log – for everyday each year – and log the kilometers traveled for business and the kilometers travelled personally.

For each of these scenarios there are accepted practices that you can follow to record the mileage and to ensure that your billings and expenses are recorded correctly so that the vehicle expenses are being appropriately paid.

If you are an existing client please call Key People Contracting so we can go over your particular circumstances with you and make sure you are on track.

If you are not a client please contact us  – you may find that we can assist you and your company in this or other services that we supply as well.