Staff author
Claiming travel expenses: Logbooks, rates and what SARS checks
Taxpayers who use their personal vehicles for business purposes can claim travel deductions (and potential a bigger tax refund!) against a travel allowance. Section 8(1)(b) of the Income Tax Act governs this process, which relies heavily on strict record-keeping.
How it works
To substantiate a travel claim, you must provide SARS with a compliant logbook. This document must capture the opening and closing odometer readings for the full tax year. For every business trip, you must record the date, destination, business purpose, and total kilometres travelled. You calculate the final claim using either the official SARS rate per kilometre or by proving your actual vehicle expenses.
Specific Scenarios
* Scenario 1: Using the SARS rate. You drive a total of 20,000 km for the year, with a compliant logbook showing 8,000 km were for business. You multiply those 8,000 km by the gazetted SARS rate for your vehicle's value to determine your deduction.
* Scenario 2: Claiming actual costs. You decide to claim actual expenses instead of the standard rate. You must keep every single fuel receipt, maintenance invoice, and insurance statement for the entire year, apportioning the total costs based on your business kilometres.
* Scenario 3: Multiple vehicles. You use two different personal cars for work during the year. You must maintain two completely separate logbooks, recording the opening and closing odometers and business trips for each specific vehicle.
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When you are not eligible
Standard commuting between your home and your primary place of work is strictly excluded. If you do not receive a travel allowance (source code 3701 or 3702) and are not a commission earner or independent contractor, you cannot claim this deduction.
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Disclaimer:This article is for informational purposes only and does not constitute financial or tax advice, and is not exhaustive. Tax laws are complex and subject to change. We strongly recommend consulting with our registered tax practitioner to address your specific circumstances.