Taxes (Easy Guide): Why do I Need to Keep a SARS Travel Log Book?
Article by Akashni Weimers
At some stage or the other in our careers, we’ve been advised by our companies to keep a log book of travel distances covered. We know that it is prescribed, but it is not altogether clear how SARS uses it, or how this is beneficial for you. If you’re wondering whether this is applicable to you, then check your payslip to see whether you receive a travel, petrol or car allowance. If you do, then yes, this record is applicable to you. You really don’t want to be caught without it come tax season.
Here’s why:
1. eFiling: Every year, SARS asks you for a bunch of info about your income through a process called eFiling. The point of eFiling is to see how much income you earn in the year from your job and investments. Depending on the amount of income you make, SARS will calculate your taxes based on which tax bracket you fall into.
“Although it is ideal for you to try make the most money that you can from your job, you also want your taxes to be calculated using the lowest possible base or income so that the taxes are also lower. Having a log book can help you achieve that”
2. With a log book, you can record the number of KMs you travelled for work purposes and use it to calculate your fuel, maintenance and wear- and- tear costs for the year. If this log book is done properly and kept up to date, SARS will subtract this cost from your overall taxable income.
Benefit to you: This makes your income base lower for you when they calculate your taxes. A lower income base means lower taxes! After all, you paid for these expenses with your allowance in the year, so why get taxed unnecessarily?
3. Without a logbook, “you won’t be able to claim the cost of business travel against your travel allowance” (SARS) and SARS will record your total allowance package as normal disposable income. You will be taxed more. What a waste of money!
Crux: Carrying a logbook when you have a travel allowance is a simple step to ensure that you are not being taxed more than you actually need to be.
Tip: When placing your travel allowance usage % on record with your employer make sure you indicate 80% towards total business travel; and then keep a logbook to prove this usage.
What not to do: Do not lie on the travel logbook. The idea here is to avoid taxes, never to evade taxes. Hint to heed: SARS will always find you. Tax evasion is a criminal offense.
Further tips on what to keep on hand in relation to your travel allowance claims in preparation for tax season:
1. The original value of your car (incl. VAT): The old purchase invoice or contract should cover this. I hope you kept a copy. It took me a while to find mine when I realised I needed it.
2. Total KM travelled in the year: This info is as easy as recording your mileage at the beginning of the tax year (March in South Africa) and at the end.
3. Your logbook: Of all of the places you travelled to for work purposes (note: this does not include your commute to and from your home to your working place, nor your private travel).
4. Travel allowance: On your payslip
5. (They also might need) Total number of days spent on travelling for business: For example, 120 out of 365 days in the year, even though they may not ask you for this.
6. (Optional) If you have it they may also ask for: Running costs such as licence disk insurance, fuel and maintenance costs.
Happy Tax Season!
