SARS Online Logbook – Travel eLogbook
Biz-Genie.com thanks Stephen O’Reilly from O’Reilly and Associates for allowing us to publish this article.
As the tax year draws to an end we are still receiving quite a few queries about the 2011 log book requirement by SARS.
There seems to be a fair amount of confusion out there regarding the new SARS requirement.
Here are some pointers to remind you of the changes:
- As of 1 March 2010 taxpayers who receive a travel allowance and wish to claim against the allowance MUST have a log book.
- The deemed KM or “formulae” system has fallen away and was only applicable up to the 2010 income tax year submission.
- A trip by trip log book is now required. (Or day by day if there is only 1 business trip a day.)
What does SARS consider to be an accurate log book?
- Opening KM
- Closing KM
- Total KM
- Business KM
- Private KM
- DESTINATION and REASON FOR THE VISIT. E.g. Client Presentation – Somerset West
Who has to keep a log book?
- Taxpayers who receive a travel allowance.
- Taxpayers who receive a company car (use of motor vehicle) and want to claim against that.
- Commission earners who claim vehicle costs.
- Sole Proprietors who only have one vehicle they use for business and private and want to claim travel costs.
What if I don’t keep a log book?
In 99% of all cases, if you receive a travel allowance and do not have a log book you will be paying in on your next tax return.
If you do not use your vehicle during your working day to actively see clients. You should not be receiving a travel allowance.
Folks, please bear in mind that SARS will be conducting rigorous audits on taxpayers who receive travel allowances.
You can Print it and keep it in your car or complete it on your computer. Just remember to SAVE it.
Also remember that you don’t have to use the SARS log book, you can use Excel or any other program.
I have spoken with many clients who complain that this is far too much work. I don’t agree!
Keeping a log book can save you thousands of Rands in tax. It just takes getting used to.
For Tax Consulting you can contact O’Reilly and Associates on Tel: 086 137 0007