A take-home vehicle is a vehicle that is provided to an employee by their employer to use for work-related purposes as well as for personal use. In Canada, take-home vehicles are becoming increasingly popular as they offer numerous benefits for both employers and employees.
Take-home vehicles are commonly provided to employees who require a vehicle for their job duties, such as salespeople, executives, and field technicians. These vehicles are typically owned by the employer and are used by the employee for both work-related and personal activities.
With the Driversnote mileage tracking app you have the tool to ensure every business kilometer you drive is properly logged.
Take-home vehicle benefits
One of the most significant benefits of a take-home vehicle is that it saves employees time and money on commuting. Instead of having to commute to and from work in a personal vehicle, employees can use their take-home vehicle for this purpose. This saves them money on gas and other expenses associated with commuting, as well as time that can be used for other activities.
Take-home vehicles can help employers attract and retain employees. Employees who are provided with a take-home vehicle may be more likely to remain with their employer for a longer period of time, due to the added benefit of having a vehicle provided to them. This can be particularly true for employees who have a long commute or who live in areas with limited public transportation options.
There are also tax advantages associated with providing employees with a take-home vehicle. In Canada, employees who use a take-home vehicle for work-related purposes may be eligible for certain tax deductions. Additionally, employers may be able to deduct certain expenses associated with providing the vehicle, such as maintenance and fuel costs.
CRA regulations on take-home cars
It's important to note that there are certain rules and regulations associated with providing employees with a take-home vehicle. For example, employers may be required to provide insurance coverage for the vehicle, and employees may be required to maintain the vehicle in good working order.
Additionally, there may be restrictions on the personal use of the vehicle, such as limits on the distance that can be traveled or restrictions on who can use the vehicle. Note that personal use of the take-home vehicle may result in a taxable benefit for the employee.
If your employer requires you to log your business and personal kilometres, see our guide on requirements for compliant mileage logs according to the CRA.
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