Vehicle-Related Expenses
Since your vehicle is your primary tool for making deliveries, many of its costs are partially deductible based on your business-use percentage.
🚗 Fuel – Gasoline or EV charging costs
🛠 Repairs & Maintenance – Oil changes, tire replacements, brake service, car washes
📄 Insurance – A portion of your car insurance related to business use
🚘 Lease Payments – If leasing a vehicle used for deliveries
📉 Capital Cost Allowance (CCA) – If you own your vehicle, you can claim depreciation
🛣 Tolls & Parking Fees – If incurred while delivering (not personal trips)
🚗 Car Loan Interest – If financing a vehicle, a portion of interest is deductible
🔧 Roadside Assistance – CAA or other memberships can be claimed if used for work-related breakdowns
📌 Tip: You must track your vehicle usage to determine your business-use percentage. Use a logbook to record your total kilometers and those driven for SKIP deliveries.
Phone & Internet Costs
Your phone is essential for managing deliveries, communicating with customers, and navigating routes.
📱 Mobile Phone Bill – Deduct the percentage used for business
💻 Data Plan & Internet – If used for SKIP, you can claim part of your monthly costs
Delivery Equipment & Work Supplies
Some tools help make deliveries smoother and can be deducted as business expenses.
📦 Thermal Delivery Bags – Insulated bags to keep food warm or cold
👕 Work Clothing – Only if mandatory and branded (e.g., SKIP jackets or shirts)
📌 Accessories – phone holders, chargers, mounts, or GPS devices is deductible if used for work
🛻 Bike Maintenance – If you deliver using a bicycle or e-bike, repair costs are deductible
📌 Tip: Keep receipts for any SKIP-related purchases to support your claims.
Other Deductible Expenses
📊 Tax & Accounting Software – Fees for software like CloudTax
🧾 Bookkeeping Services – If you hire someone to track your income and expenses
📜 Legal or Business Fees – Any fees related to your self-employment
Non-Deductible Expenses
Some costs may seem work-related but aren’t deductible under CRA rules.
🚫 Food & Beverages – Even while on deliveries, meals are personal expenses
🚫 Personal Use Portion of Expenses – Only the business-use portion is deductible
🚫 Commuting Costs – Driving from home to your starting location isn’t deductible
How CloudTax Makes It Easy
💡 No manual calculations needed! Enter your expenses, and CloudTax automatically applies deductions, ensuring you get the maximum refund possible.
Keeping detailed records helps you save on taxes, reduce audit risks, and stay CRA-compliant. Start tracking today to maximize your deductions! 🚗📦