If your employer does not provide you with a per-kilometre allowance for vehicle expenses incurred due to your employment, you are eligible to deduct the employment portion of your vehicle expenses. Get your employer to fill out and sign a form T2200 – "Declaration of Conditions of Employment" which states the requirement for you to use your personal vehicle for your employment duties.
Keep a log to support the business use of your vehicle in the event CCRA examines your claim. Write down your odometer reading on January 1, at the beginning and end of each employment-related trip, and on December 31. Take the total employment-related kilometres and divide by the total kilometres driven during the year – this calculates the percentage of kilometres driven for employment purposes. Multiply this percentage by your total vehicle expenses (including fuel, insurance, registration, maintenance, interest, etc.), and you will arrive at your total claim for employment-related automobile expenses.
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