The only three checklists you'll ever need when it comes to company cars
Sometimes large amounts of information can be overwhelming especially when all you're trying to do is have all the relevant information you're looking for, summarised and in one easy-to-find place. I have just the answer for you...
We've compiled three handy checklists on the details that MUST be included in your logbook, the three most common travel allowance errors you must avoid to escape penalties and all the differences between a company car and a travel allowance. You can print these out and keep them on your desk so you don't have to wade through pages of information.
While going through your checklists you might have a question about company cars or travel allowances. So what now? Do you go back to the internet to search for the answers? Or call you tax consultant and spend R1 200 to get your answer?
No. You don't have to do either of these. We've answered 10 of the most popular company car and travel allowance questions. Here they are.
Without these readings, you can't claim a tax deduction
For you to claim, you need to record your vehicle's odometer reading on 1 March each year.
You can calculate your travel deduction, once you've taken down the readings and worked out your total business travel for the year.
Your logbook must contain the following minimum information of your business travel:
Date of travel;
The amount of kilometres you travelled; and
Your travel details (where to and why).
If you use more than one vehicle in the tax year, you must keep a logbook for each vehicle.
Let's look at how Mr Smith benefited from an accurate logbook.
47 Ways to get your money back from SARS.
Never make allowances and deductions mistakes again...
Discover answers to 47 of the most popular allowances and deductions questions, you'll also:
Find out how to avoid making common mistakes and having to fork over R700 an hour for a tax consultant.
Find quick solutions to your own allowance and deductions problems so you won't have to spend hours doing research to find the right solutions.
Take control of your company's finances and receive all your tax refunds back from SARS.
Find out more here.
See how Mr Smith saved R26 983 from an accurate logbook.
Mr Smith uses his personal vehicle for business purposes. His vehicle costs him R250 000 including Vat, but excluding his finance charges. His travel allowance is R69 970. He travelled a total distance of R17 600 kilometres for the period 1 March 2014 to 29th February 2015.
Business travel 10 518 km
Private travel 7 082 km
Total distance travelled 17 600 km
Fixed cost = fixed cost/Total km: ((79 185/17 600) x 100) = 479.26c
Fuel cost = 120.50c
Maintenance cost = 41.6c
Total cost = 641.36c
Business km x total cost 10 518 x 641.36c
Allowable deduction = R67 458
Tax saving based on a marginal tax rate of 40% = R26 983
That's it Mr Smith saved R26 983 with accurate logbook and now so can you!
SARS is hungry to increase its collection and doesn't want to know how to pay LESS tax like this! But I'll let you in on 139 secrets the Practical Tax Loose Leaf Service
has uncovered for you.