Get the most out of this tax season
As part of the GPS Log Book family, we want to remind you that the tax filing season opens on the 1st of July 2022. Whether you’re self-employed, a business owner or a corporate employee, it’s important to keep a record of your trips to ensure that you can provide an accurate, detailed and SARS-compliant logbook to claim money back. Your GPS Log Book device does all this for you.
If it’s your first time claiming travel expenses, here are a few handy tips to get you started:
When can I claim for travel? If you receive a travel allowance, you can claim a deduction for the use of your private vehicle for business purposes. You may only claim travel expenses if you received a travel allowance that will be reflected as code 3701 and/or 3702 on your IRP5/IT3(a) and keep a logbook. If you receive a travel allowance, you have to claim travel expenses based on the actual business kilometres travelled, excluding kilometres travelled to and from work as this is regarded as private travel.
What do I need to do before I can claim?
- record your motor vehicle’s odometer reading on 1 March, i.e. on the first day of a tax year.
- make sure that you keep a logbook throughout the year. Note that it is not necessary to record details of private travel.
- record your motor vehicle’s closing odometer reading on the last day of February (28/29) of the next year, i.e. on the last day of the applicable tax year.
- calculate your total kilometres for the full year (closing kilometres less opening kilometres).
- calculate your total business kilometres for the year (sum of all business kilometres).
- The date of travel
- The kilometres travelled
- Business travel details (where you started your trip, where you went and the reason for the trip)
Information taken from the SARS website: SARS website
Trip data can be further enriched by the following supplementary information:
- Business versus private trips
- The reason for the trip
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 SARSefiling 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, leaving you with a potential tax liability.
GPS Log Book was designed with one thought in mind – to eliminate the tedious process of manually completing your trip logbook. To ensure that your travel claims are up to date, never leave home without your trusty sidekick – GPS Log Book.
See how much you can save using our claims calculator with GPS Log Book
The GPS Log Book Team