Tax – frequently asked questions
Many taxpayers are often overwhelmed by the thought of having to submit a logbook for tax purposes.
Frequently asked questions:
When can you claim for travel?
If you receive a travel allowance from an employer or principal, you can claim a deduction on assessment of your annual income tax return for the use of a private motor vehicle for business purposes.
What do I need to do?
• Record your motor vehicle’s odometer reading on March 1, the first day of a tax year.
• Make sure you keep a logbook throughout the year. Note that it is not necessary to record details of private travel. You can use the Sars eLogbook, available at www.sars.gov.za
• Calculate your total kilometres for the full year (closing kilometres less opening kilometres).
• Calculate your total business kilometres for the year (sum of all business kilometres).
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What do I record in my logbook?
In respect of every business trip you record the following:
• The date of travel
• The kilometres travelled
• Business travel details (where you started your trip, where you went and the reason for the trip)
Top tip: your travel between home and your place of work cannot be claimed for business purposes, as this is regarded as private travel. A separate logbook must be kept for each motor vehicle where more than one motor vehicle has been used for business travel during the year of assessment.
How do I work out how much I can claim?
There are two ways of doing this:
• Calculate your claim based on the cost scale table which Sars supplies (you’ll find this table in the introduction section to the travel eLogbook).
• Calculate your claim based on actual costs. To do this, you’ll have to keep an accurate record of all your expenses during the year, in addition to keeping a logbook. These expenses include fuel, oil, repairs and maintenance, car licence, insurance, wear-and-tear and finance charges or lease costs.
Top tip: you must keep your logbook for a period of at least five years from the date of the submission of your return, as you may be required to submit it to Sars to back up your claim.
• Information provided by Sars.
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