How to create a SARS-proof travel logbook in three simple steps
When it comes time to hand in your tax return, SARS wants you to prove certain details with supporting documents.
A great example of this is a logbook. You'll use this to prove the deductions you want to claim for your business travel expenses. This is an important deduction for most business owners as rushing to all those client meetings can really add up.
Luckily, it's easy to create an accurate logbook that'll be SARS proof and get you your tax deduction every time. All you have to do is follow these three steps...
Here are the three steps to create an accurate logbook
Step #1: Create a table in a workbook with nine columns in it. Title these columns as follows:
• Date of travelling;
• Opening kilometres;
• Closing kilometres;
• Total kilometres;
• Private kilometres;
• Business kilometres;
• Business travel details (where, reason for visit, etc.);
• Actual fuel cost and oil cost; and
• Actual repairs and maintenance cost.
These are the details SARS wants to see.
Here are the next steps...
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Step #2: Document the car's current total mileage. This helps to ensure you know exactly how many kilometres you travelled from when you started using the logbook.
Step #3: Fill in each of these records after you do ANY business travel. SARS wants to see very clear details of your business travel so you can support your claim for a deduction.
Be careful to pay extra attention to how much private travel you do. If you don't record this properly and you claim for private travel by mistake, you'll be in serious trouble if SARS finds out.
It's really that simple to create an accurate logbook. Simply keep it up-to-date and you'll never have any problems with it when it comes time to submit your logbook with your annual tax return.
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