Whether you have a company car or some of your employees do, the importance of keeping an accurate log can't be overstate. The Practical Tax Handbook
reveals these nine essential details your company car logbook must have…
Essential logbook detail #1: The date.
This may seem obvious, but there's nothing worse than a logbook that's got a whole blank column where the dates should be. Ensure there is space for day, month and year.
Essential logbook detail #2: Opening kilometres.
If your employee's logbook doesn't have this detail, there's no way of knowing how far they've traveled.
Essential logbook detail #3: Closing kilometres.
Same as above – don't forget, unless your employee 'shows their work', glaring errors can creep into logbook tracking.
Essential logbook detail #4: Total kilometres.
The total amount traveled for that day, not distinguishing between private and business kilometres.
Essential logbook detail #5: Private kilometres.
Every time the driver uses the car for personal reasons, they must log this use.
Essential logbook detail #6: Business kilometres
A record of all the kilometres traveled for business use.
Essential logbook detail #7: Business travel details.
You must insist on plenty of details here. Simply scribbling 'client' in this column won't do! Your employee must define where the trip
was, the reason for the visit, etc.
Essential logbook detail #8: Actual fuel cost and oil cost.
Rounding up or down is unacceptable, ensure this number is accurate and your employee keeps all receipts for your records.
Essential logbook detail #9: Actual repairs and maintenance cost.
Receipts are also essential to solidify these expenses.
Now that you know how to ensure your employee's company car logbook has enough detail, you can fly through the personal tax season with ease.