SARS Business mileage logging requirements

With the individual financial year coming to a close in the next month, it is absolutely vital to remember every piece of information that has to be compiled into your SARS tax return before the end of February. This includes, as of quite recently, a mandatory mileage tracking logbook for any person that receives an allowance for business usage of their private cars, or has been given a company car to use for business purposes.



The logging procedure is used to differentiate personal travelling distances from business time in order to determine how much of a tax break an individual should be given (since business mileage adds extra wear to the vehicle, the owner should be compensated for their use of it). The requirements for the SARS compliant logbook are quite detailed, and require accurate recording of all travels both during and after office hours.



For example, every trip that is made must be recorded, along with the reason for the trip, the destination, distance and time. These facts are checked against the odometer readings that are required from the vehicle on the first and last day of every financial year.



GPS tracking has als become popular in areas such as mileage logging that is required by some companies whose employees are frequent travellers. Paper is no longer the easiest way of logging mileage and distances. Electronic logbooks such as those made by The Little Logbook have made the whole process so much easier and don’t require half the effort on your part.



The GPS trip logger simply plugs into your vehicle, and does all of the work for you. It generates detailed trip reports that are compliant with SARS outlines, and can be password protected for your peace of mind.

Little Logbook – FAQ #4

How do I categorize my trips between business and personal?

 

In order to distinguish between business and private trips on your log, you will need to have the accompanying software installed on your PC or laptop. Once your device and all of the recorded trips on it have been synced with the software, right clicking on a specific trip will bring up a drop down menu. In this menu you will be able to distinguish between private and business trips.

 

From this menu, you will also be given the opportunity to qualify the reason for the trip (if the business option is selected) in order to provide a more detailed description of your trip for tax or business related purposes.

 

The Little LogBook also allows you to name certain destinations that appear frequently in your log. This allows you to keep your log as detailed and user-friendly as possible. For instance, if you would like to know how often a vehicle in your fleet makes a trip between your head office and a factory, bring up that destination, and all of the trips in that range will appear.

 

From a business perspective, the Little LogBook will enable you to keep track of all of the costs incurred by your vehicles, as well as maintain accurate route plans and plan efficiency.

Little Logbook – FAQ #2

Where should the device be placed inside the vehicle?

 

As with most GPS technology devices, the Little LogBook makes use of satellite triangulation technology. In order to aquire the optimal connection with the required satellites, the device should be placed and secured (using the provided adhesive attachments) to the dashboard, allowing it to maintain a constant stream of information.

 

While this is noted as the optimal position, you may find that your vehicle’s optimal spot is in another region, or that your travel route requires you to travel between mountains, hills, and tall buildings or through tunnels. In these situations, you should remember to check your device to make sure that it is able to maintain its connection, and adjust its position accordingly.

 

The connection between your device and at least three satellites is required for GPS tracking technology to work. Any obstruction or dense object in the direct path weakens the signal. This means that having a clear view of the sky is the most suitable way to maintain a secure connection.

Little Logbook – FAQ #3

Are there monthly charges/What do you get in the box?

 

Upon purchasing the Little LogBook GPS Trip Logger, you will receive the USB stick, which contains the GPS hardware and will act as your portable trip logger, a software installation disk that contains your PC integration program, an adhesive dashboard strip which allows you to attach the device to your dash to keep it secure, and a quick start manual for easy, on hand instructions.

 

Once you have purchased the device, you will not be liable for any extra fees, such as monthly subscriptions, service fees or update costs. Your device is bought and paid for immediately with a simple once-off purchase.

Little LogBook – FAQ #1

What is Little LogBook and what is the benefit?

 

The Little LogBook is a GPS-enabled mileage-tracking device that can be used in any vehicle. The device makes use of GPS technology to create an automatic digital log of the distances travelled in the vehicle, which can then be loaded onto a computer using the linking software.

 

The Little LogBook is no larger than a flash drive. It uses a minimum of four satellites to log your kilometers as you drive. This information is translated into a SARS-compliant report, using powerful software, fully developed and supported in South Africa.

 

The Little LogBook replaces your traditional analog method of tracking mileage, and allows you to rest easy, knowing that your logbook will be accurate and free of any errors, as the device will do all of the work for you, leaving you more time to worry about the important things.

 

The Little LogBook provides a complete, accurate account of your mileage to be used for tax purposes, and eliminates the threat of fraudulent record keeping.

What is a provisional taxpayer?

The South African Revenue Service, in 2010, made changes to the process that is to be used by ‘Provisional Taxpayers’. The new process includes new IRP6 forms, processes for filing and E-Filing of provisional tax, and requirements.

 

Provisional taxpayers differ from regular taxpayers in that provisional taxpayer status is awarded to anyone that receives an income other than remuneration in the form of a salary or wage. Income such as house rental, investment return, interest returns, etc., all get placed under provisional tax, even if the taxpayer also receives a salary. The Provisional Taxpayer status is automatically assigned to companies.

 

Provisional taxpayers are required to make two payments through the course of the year, with a third payment being optional at the end of the tax year.

 

The calculation of payable tax for each period is as follows (according to the SARS website):

 

• The First Period: (Payable with in the first six months of the year of assessment)

◦ Half of the total tax for the full year;

◦ Less the employees tax deducted for this period (6 months);

◦ Less any allowable foreign tax credits for this period (6 months).  

 

• The Second Period: (No later than the last working day of the year of assessment)

◦ The total estimated tax for the full year;

◦ Less the employees tax paid for the full year;

◦ Less any allowable foreign tax credits for the full year;

◦ Less the amount paid for the first period.

 

• The Third Period (voluntary):

◦ The total tax payable for the full year;

◦ Less the employees tax paid for the full year;

◦ Less any allowable foreign tax credits for the full year;

◦ Less the amount paid for the 1st and 2nd provisional tax periods.

The Development of The V8 Engine

 

The V8 engine has possibly the biggest cult following of any engine type, and because of this, has been largely popularized throughout the world (however, it is most notable in American motorsports and private collections). The development of this engine has gone through many phases, starting with the development of the 4-stroke engine by Nicholaus Otto and others in the late 19th century.

 

The 4-stroke engine, developed by Otto has become the basis for all modern car engines, but the original design was not kept as it was for very long. Developments in fuel injection technology, as well as supercharging and the stylized mounting systems used to stabilize different types of engines.

 

The most popular engine-balancing configuration puts the cylinders at an angle of 90oto each other, however angles of 75, 72, 60 and 45 degrees are also used, depending on other aspects such as performance needs and weight ratios.

 

The two layouts most commonly used on V8’s are the ‘cross-plane’ which is counter weighted to reduce instability, but is much heavier and has a higher center of gravity as a result; and the ‘flat-plane’ configuration, which has more second order vibration because of how the pistons are situated. The ‘flat-plane’ has higher performance output, but the vibration makes the drive more unstable.

 

Other developments in the internal combustion engine include the use of fuel injection (first used in 1952 and later turned into an electronic process in 1975), forced induction (which pumps air through the cylinders faster, allowing for a more efficient combustion of fuel, such as in the supercharger and turbo induction methods), and the use of lighter and stronger materials such as aluminum and thermo-set plastics (as late as the early 21st century) to lighten the load and make the engine more stable and thus, conducive to performance enhancements.

 

Written By Wesley Geyer

Creative Writer for ATKA SA