How to get your travel claim ready

GPS Log Book records the time, location and speed of the vehicle at any point of the trip, and whether or not it was a business trip based on the zones you have created using Google Maps.

GPS Log Book records the time, location and speed of the vehicle at any point of the trip, and whether or not it was a business trip based on the zones you have created using Google Maps.

Published Feb 9, 2016

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Johannesburg - Whether you’re self-employed, a business owner or a corporate employee, tracking your travel and fuel expenses is crucial for business and tax purposes.

But when your work day is jam-packed, logging your kilometres and expenses can be about as much fun as stepping on a piece of Lego. We all need to keep a detailed logbook if we want to claim against a travel allowance - without it you won’t be able to claim a deduction against your travel allowance from SARS.

GPS Log Book could be your tax bonus 

If you get a travel allowance, you can claim a deduction for the use of your private vehicle for business purposes - but only if you keep a logbook and your travel allowance is reflected as either code 3701 or 3702 on your IRP5/IT3(a). You can only claim travel expenses on the actual business kilometres travelled - commuting between home and work doesn’t count.

You’ll need to keep a detailed logbook throughout the year, showing your vehicle’s odometer reading on 1 March (the first day of the tax year) and again on the last day of February of the next year (the last day of that tax year). The difference between the two will give you your total kilometres travelled for the year.

Your logbook must include the following minimum information for each trip:

The date.

Where you started and ended your trip.

The distance travelled.

Whether the trip was business or private.

The reason for the trip.

You’ll also need to keep an accurate record of all your related expenses during the year, including fuel, oil, repairs and maintenance, car licence fees, insurance, as well as wear and tear - and you need to keep your logbook and related documents for a period of at least five years, in case you have to submit it to SARS to back up your claim.

If you didn’t keep an accurate record, you can use the table of costs linked to the value of your vehicle supplied by SARS each year; see www.sars.gov.za/Tax-Rates .

How does SARS calculate such a claim?

You have to provide: the cost price or cash value of the vehicle, the opening and closing odometer readings, the opening and cliosing dates (usually 1 March and the last day of February) and the total business kilometres travelled.

How do I submit a claim?

Your travel claim forms part of your Tax Return that you submit annually to SARS. This can be done by visiting SARS efiling and completing the travel allowance section on the website. Alternatively, contact your tax advisor who will be able to assist you further.

A complete and detailed logbook may well result in a tax refund, based on the information supplied, but incomplete or inaccurate information could result in SARS rejecting your travel claim - you could even wind up owing them money.

Probably the most accurate way to claim your travel expenses is by using a GPS Log Book, which records the time, location and speed of the vehicle at any point of the trip, and whether or not it was a business trip based on the zones you’ve created using Google Maps, so you’ll never have to backtrack through your appointment book to remember where you went!

WORK IT OUT

You can even calculate your claim using the calculator on the GPS Log Book website , based on the 2015/2016 SARS cost table, which will provide you with an approximate claim amount. For example, if your car is valued between R80 000 and R160 000 and you travel about 20 000km a year - half of which is business related, the estimated claim amount from SARS should be about R25 000.

To find out more, or buy a GPS Log Book, visit the website : you can also buy one online at   takealot.com or at Tiger Wheel & Tyre nationwide.

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