Your Travelling and the SARS

[AFBS]

I know it is not a posting about some exotic travel destination - but it is important to KNOW the information below when you're on your way there!
So please forgive....

Calculating a travel deduction if you are in receipt of a travel allowance
The income tax system allows taxpayers who receive a travel allowance to
claim a deduction for the use of their private vehicle for business purposes. It is important to note that travel between your home and place of work cannot be claimed and is regarded as private travel.In order to claim a deduction, the fi rst step is to record your vehicle’s odometer reading on 1 March each year (the fi rst day of the tax year for individuals) and again on the last day of February the next year (the last day of the tax year for individuals). These opening and closing readings give you your total kilometres travelled for the year. Without these readings, you cannot claim a tax deduction! Once you have taken down these readings and worked out your total travel for the year, you can start calculating your travel deduction. First you need to calculate what portion of the total kilometres travelled was for business use and what portion was for private use.
There are two methods to calculate the business kilometres travelled:
1. You can make use of the deeming provisions where the fi rst 18 000
kilometres travelled will be deemed as private kilometres travelled. In this
method you do not need to keep a record of travel but must still record
your opening and closing odometer readings. Using this method you may
only claim a maximum of 14 000 kilometres for business purposes a year.
2. You can keep a logbook of all your travel in which you record what
travel was for business and what travel was for private purposes. Using
this method there is no limit on the amount of kilometres you claim for
business purposes.
Now you are ready to calculate the amount of your claim.
As a taxpayer you again have two choices:
1. You can calculate your claim based on the table of costs supplied by SARS
each year (On the next page of this logbook you will fi nd the cost tables
which apply to the tax year between 1 March 2008 and 28 February 2009).
By using this method you do not have to keep an accurate record of all your expenses and simply use the costs linked to the value of your vehicle.
2. You can calculate your claim based on actual costs. Using this method
you must have kept an accurate record of all your expenses during the
year including fuel, maintenance and lease costs.
You do not have to keep a logbook. But if you do and record all your details of travel and expenses during the year it gives you the option when you submit your tax return to choose which method of calculation you want to use.
If you don’t keep a logbook you can only use the deeming provisions –
which may limit the amount you can claim as a deduction.
Please note that you must retain your logbook for a period of at least fi ve years as you may be required to submit it to SARS for verification of your claim.

Sincerely hopes this helps!
Genevieve (Bookkeeper by trade - explains the boring info huh?)
www.apropos.co.za

[gdiza]

SARS scares me

[Pm911]

To add to the above you can visit the SARS website in order to view or download a template of the logbook (and brochure).
This template will show you the format that SARS requires to keep your actual kilometres.

Visit the following website http://www.sars.gov.za/ and then on the advanced search type "logbook" and then click search.
You should see the link to the relevant tax year's logbook (brochure).
The above guide is also mentioned on the brochure.

[pete_flynn]

You can keep an SARS compliant online travel expense log. It's free to register, You can use it through the internet and/or your phone and it works out your correct SARS figures against your logs. You can download the logs to Excel at the end of the tax year and use that as your expense claim. Check it out: http://www.travellogger.co.za

[nico.success]

Easiest way is to automate your SARS Logbook. Check this tool out - www.elogger.biz - works nicely for me.

I dont think people realise how serious the logbook requirements are from March 2010. Deemed km's are no longer accepted and people can loose a fortune.

For the people who are disciplined enough to keep a manual one you can get the 2010 logbook here - http://www.sars.gov.za/home.asp?pid=42105