Travel allowances and SARS logbook requirements – including Sole Traders/Consultants/Commission Earners

If you received a travel allowance during the 2010 tax year, you needed to record your odometer reading as at 28 February 2010. From 1 March 2010, it is compulsory for taxpayers who receive a travel allowance and who wish to claim for their business mileage deduction, to keep a logbook of their business mileage.

Please note that the same would apply to individual persons who have their own businesses or commission earners / consultants who want to claim for the business portion on the usage of their personal vehicle. The practice of deducting all motor vehicle expenses and only adding back 2.5% per month of the vehicle’s cost as a “private usage” deduction, will not be allowed after February 2010. The business portion of the motor vehicle’s cost must be apportioned according to the business mileage over the total mileage travelled for the tax year.

The logbook should include the date, odometer reading and purpose of trip/client’s name. Opening and closing odometer readings for each tax year must also be noted.

Taxpayers who do not comply will forfeit the benefit of the allowance or limit the allowable tax deductions and could owe money to SARS on assessment.

SARS has also provided a free travel logbook for all taxpayers to use to record their business mileage for their tax claim – see the following link to the SARS Travel Logbook 2010/2011

Should you require any further information, please do not hesitate to contact us.

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