HomeHome SearchSearch MenuMenu Our productsOur products

Can't get employee to keep an accurate logbook? Tell them this...

by , 22 August 2013
Do your employees think it's useless to keep an accurate logbook of their business travel? If so, tell them about how they can save thousands by maintaining theirs right...

If your employees receive a travel allowance, they must keep an accurate logbook. And that's because it pays to keep an accurate log book.

Let's take a look at how your employees can save some money with an accurate logbook

If your employees are sceptical about the importance of an accurate logbook, show him this example from the Practical Tax Loose Leaf Service which shows how an employee with no logbook can lose out.

No logbook: Mr Smith uses his personal vehicle for business purposes. He didn't maintain an accurate logbook. His vehicle costs him R250 000 including Vat, but excluding finance charges.

His travel allowance is R64 970 for the tax year ending 28 February 2013. He travelled a total distance of 17 600 km for the period 1 March 2012 to 28 February 2013. Mr Smith won't have a claim because he didn't keep a logbook.

Here's an example of how keeping a logbook will benefit your employee:

Logbook kept: Let's assume Mr Jones maintained an accurate logbook as follows.

Business travel - 10 518 km
Private travel - 7 082 km
Total distance travelled - 17 600 km

Mr Jones's travel deduction is calculated as follows.

Fixed cost = fixed cost/Total km: (86 211/17 600) x 100) = 489.8c
Fuel cost = 81.5c
Maintenance cost = 46.4c
Total cost: Business km x total cost 10 518 x 617.7c
Allowable deduction = R64 970
Tax saving based on a marginal tax rate of 40% = R25 988

Mr Jones will benefit in paying R25 988 less in taxes, compared to Mr Smith who doesn't keep a logbook.

It's as simple as that. Show your employee how much money he'll save by keeping an accurate logbook and you'll never to struggle to get one out of him again.
 

Vote article

Can't get employee to keep an accurate logbook? Tell them this...
Rating:
Note: 5 of 1 vote


Related articles




Related articles



Related Products