Have you taken a look at your employee's logbook lately?
Does it comply with all the things SARS wants in a logbook?
This question is hard to answer if you don't know what SARS wants.
If your employee's logbook isn't accurate, it'll lead to penalties for him and your company. That's why it's so important to know what SARS wants and ensure it's in the logbook.
The good news here is, you no longer need to guess what SARS wants in a logbook because we're going to tell you...
Here's what SARS wants to see in your employee's logbook
The first things SARS wants to see in your employee's logbook are clear details of his private travel.
When he records his private mileage, tell him to concentrate on his private travel distances, as opposed to his business mileage.
The reason for this is simple. If your employee uses his travel allowance for private travel, it becomes a fringe benefit. This means he must pay fringe benefit tax on it. That's why SARS wants to see clear private travel details.
That's not all SARS wants though. Read on to find out what else it wants to see…
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Get 69 solutions to the most challenging company car and travel allowance questions
If you don't know the answers to questions like:
- How often your employees should hand in their logbooks?
- If you're required to pay Vat on a company car your employee wants to buy?
- How to calculate travel allowances correctly to avoid being head hunted by SARS?
- If you can claim input tax on a vehicle you use for company purposes?
You're not only wasting unnecessary hours of time, but could also be making mistakes that SARS will hunt you down for.
Here's what else SARS wants from your employee's logbook
Your employee's record of his fuel and oil consumption and the odometer reading taken at fuel stops don't constitute an accurate logbook. SARS doesn't get the information it needs on what business and travel he did between fuel stops from that. So he mustn't rely on this alone.
Instead SARS wants to see FULL details of your employee's travel including:
• Date of travelling;
• Opening kilometres;
• Closing kilometres;
• Total kilometres;
• Business travel details (where, reason for visit, etc.);
• Actual fuel cost and oil cost; and
• Actual repairs and maintenance cost.
Now that you know what SARS wants to see in your employees logbook, be sure to check all these details are there.