How SARS Logbooks solve your biggest problems

Anyone who has had to fill in a tax return knows that if you don’t have everything in order, you’re going to be in for a very difficult process of trying to find receipts, remembering where your information is, and trying to recall exactly what happened over the past year. With SARS recently clamping down on estimated entries, and changing their evaluations to make it necessary to be as precise as possible in order to avoid paying penalties, the worst thing you can do when it comes to your tax return is to leave out any information, or worse yet, misrepresent it.

 

There are, however, alternative ways that will allow you to keep your information in order, not only allowing you to keep it close at hand for when you need to collect it for your return, but some will even help you out by arranging and keeping track of the information for you!

 

When it comes to vehicle and travel allowances, which are among the most common tax deductions, but they are also the most difficult to stay on top of if you don’t know what you’re doing from the beginning. If you receive a travel or vehicle allowance, you are required to keep a detailed log of all your trips in your particular vehicle, including personal and business related trips. This means that every time you get into your car, you will need to keep track of how far you travel, what the trip is for, and where you’re going. This seems like a lot of work, and it really is, unless you get into a routine of doing it on a daily basis. However, there are products on the market that will allow you to skip this entirely tedious task, and will not only be a time saver, but will likely be more accurate and detailed than you can be (even on your best day!).

  

The Little Logbook GPS trip logger allows you to take to the road without manually tracking your trip. Simply keep the logger in your car, keep it powered on using the USB connector, and your entire trip will be tracked via advanced GPS technology. You will be able to review the data on your computer, and even add details such as the names of the places you visit most often, the reasons for your visit, all of which will make it easier for you once tax season comes around.

 

With the Little Logbook, you no longer have to worry about remembering where you’ve been, or even where your staff have been (since it is also used very effectively by fleet managers to keep track of their drivers’activities). Simply plug it in and you will never miss a trip again. Missing trip information or looking for the most efficient route for your drivers to take to their destinations? All of this can be drawn from the information collected automatically by the Little Logbook device, so everything you have to worry about when driving is taken care of for you. All you need to do is drive. With GPS loggers, doing your taxes has become just that much easier, and by using them you will probably find yourself saving much needed time and money.

For more information on saving on tax please visit our website at Little LogBook 

5 Easy tax saving tips for small businesses

With the  global economy just now recovering from a scary position over the last few years, most small businesses in South Africa are in a very difficult position. Since small businesses fail at a higher rate than most other businesses, it is important for business owners to make good decisions when it comes to saving money and cutting costs. One of the most effective ways of doing that is to make savings count on your tax returns. Here are a few easy tax saving tips that you can implement in your small business:

1.     Home office

 Having a dedicated space in your house designated solely for the purpose of running your business is one of the easiest ways to get a break on your tax. Not only does it give you an affordable cut on your return, but also gives you a place to do your work from when you’re not at the office; and lets face it, we all enjoy being away from the office sometimes. You will need to set out the space clearly though, since you cannot claim a return on a space in your home if it just happens to have a computer in it.



2. Office supplies

Even if you don't take the home-office deduction, you can deduct the business supplies you buy. Hang onto those receipts, because these expenditures will offset your taxable business income. Supplies such as printer cartridges and toner, as well as printers, bigger office machinery and even computer equipment, can also be claimed for, so make sure to keep a list of everything you bought, even if it was bought out of your own pocket.


 3. Meals and entertainment

General tax law states that any business expense can be deducted from income if that expense was incurred in the process of generating income (any income not capital in nature). This means that any lunch or coffee expenses you incur while entertaining potential clients, going on lunch meetings and brainstorms with your sales team, can all be deducted from your tax return as a business entertainment expense.


4. Travel expenses

Much like the entertainment deduction, any travel costs incurred in the process of generating income can be deducted (at different levels, depending on the type, duration and extent of the travel) as a legitimate expense. Not only fuel, but also flights and accommodation can be deducted, so be sure to keep track of all your travel logs, fuel costs and the expenses incurred at your place of accommodation. Travel expenses such as daily travel can also be deducted, and are perhaps the most common. Using an electronic trip logger such as the Little Logbook, which uses GPS coordinates to automatically record your entire trip will allow you to keep an incredibly accurate account of where you’ve been, and which of your trips were business related.


5. Educational costs


Small business owners can deduct employee's educational expenses if the courses apply to their job, and self-employed business owners can write off some of their own educational expenses. Transportation to and from the classes may also be deductible.


If you would like to purchase a Log Book for your business travel expenses please visit our website at : http://littlelogbook.net/

How can I deduct my home office expenses from my tax return?

As someone working from home, I find myself often taking more than the necessary steps to make my home office as comfortable as I can since, well, it’s mine. Anyone who works from home who has an old office to compare it to will tell you that their personal space is usually kitted out much more than the cubicle they used to share with that one guy who never knew how to keep his stuff off their desk. Because we tend to spend our own hard earned money making our home offices as comfortable and suitable for productivity as possible (and yes, having a video game system set up in your office DOES hinder productivity), it sometimes feels like we might be getting the short end of the stick.

I know that many of us home office guys (and girls) often think “if my company can deduct ‘office expenses’ from their taxes, why can’t I?”, but many of us didn’t even know that this was possible. The thing about it is, however, that there are limitations on what you can and can’t apply to have deducted from your tax return, depending on the state of your home office, your reasons for working from home, the type of job you do, etc.

For instance, if you are employed by someone other than yourself, and that person/company allows you (and deems it suitable and convenient that you do in fact work from home) to work from home, you will be able to deduct your home office expenses (including rent - for the portion of your home dedicated to work -, equipment, repairs and utilities) from your taxes at the end of the year. Remember, you will need to calculate exactly how much space is used as an office. For instance, if your office takes up 20% of your home, then only 20% of the rent, utilities and other expenses will be tax deductible.

Another thing to note is that the amount of things you can subtract relies heavily on your remuneration structure. If more than 50% of your income is commission based, you will be able to deduct more than if your full remuneration comes in the form of a salary or wage. You can only deduct tax from your home office if that office is used EXCLUSIVELY for work, and having a home office must be your only option for work. Having a desk available at the company office but simply choosing not to go in does not qualify you for tax deductions in this regard (as much as I have tried to convince my boss that it still counts anyway!).

Driving around to see clients? Keep a detailed logbook so that you can claim from SARS and save some money to spend on your home office. Little LogBook can log all your trips for tax purposes electronically. Visit our website to acquire your Little LogBook

If you’re in doubt regarding how much you are able to deduct considering your own situation, try consulting an expert or tax consultant who will be able to give you a more in depth breakdown of what exactly can be done about it. But until then, don’t let anyone know that you also secretly use your office as a hiding spot to get out of doing the work your spouse asked you to do!

Best horse-riding trails in South Africa

 

A child’s basic motor and communication skills can be affected by a variety of disabilities and many parents have had to hear that their child’s abilities and skills will never improve. 

 

In recent years, horses have been found to be useful when included as part of therapy in a child’s treatment program. This is called equine therapy.

 

Counsellors who have included equine therapy in a child’s treatment have reported dramatic improvements in the child’s abilities. A case has been documented of twin boys diagnosed with cerebral palsy who started walking after three years of equine therapy – against all prognoses!

 

One should remember though that every child responds to therapy differently and therefore there can be no set time frame for achieving a certain level of improvement. The general consensus amongst those who use the therapy is that it definitely has a positive effect.

 

Many physically disabled children lack the balance and coordination required to be able to ride a horse. By giving the child a physically enjoyable experience, it inadvertently also assists in developing muscle tone, balance and coordination.

 

Besides riding horses, the children also learns to groom a horse as it aids them in comprehending the importance of caring for others, whether it be animals or humans. 

 

When the child has a better understanding of how to groom the horse, the therapist can also let them take lead in directing the grooming process which does wonders for the child’s self-confidence.

 

Some of the disabilities and disorders that have responded favourably to equine therapy include:

 

• Cerebal palsy

• Downsyndrome

• Multiple Sclerosis

• Spina Bifida

• Spinal cord injuries

• Brain injuries

• Attention Deficit Disorder

• Stroke

• Visual impairment

 

Horse riding is not only beneficial to disabled people, but also to the everyday person. It has been known to increase one’s general mood and reduce stress. 

 

Pop in at one of the following horse trails to get your weekly dose:

 

• African Horse Company

 

Offers short outrides and 2 – 10 day overnight trails in Cape Town.

 

• Berg Trails

 

Offers a short one or two day overnight trail in the Drakensberg.

 

• Colin’s Horseback Africa Safaris

 

Riders have the chance to see game or horseback, outside of Pretoria in Gauteng.

 

 

Written by: Marleen Theunissen

Step-by-step guide to skydiving

 

Skydiving is one of the sports that features most on many people’s bucket lists. There is something about it that makes people crave the adventure and adrenalin that comes with falling out of an airplane at terminal velocity. 

 

While it is something that can easily be done by a beginner with the help of a trained professional, it is not as simple as strapping on a parachute, flying up to 20,000 feet and jumping. 

 

There is a whole host of safety procedures, failsafe’s and safety checks that need to be performed to make the experience a successful one.

 

The first thing you need to do is to dress according to the weather on the ground. It may be necessary to bring an extra layer, since temperatures and wind factors are much harsher at higher altitudes. Once you get to the drop zone, or depending on how you’ve made your arrangements, you will need to decide on what kind of jump you want to do. Tandem jumps are the most common for beginners, and involve no more on the part of the inexperienced jumper than to get strapped to a professional, then to hold on and enjoy the fall. 

 

Static line jumps allow the jumper to exit the plane by himself or herself, with the chute deployed automatically via a lined connection with the carriage. Inexperienced jumpers will have radio contact with the ground to assist in maneuvering and landing techniques. Accelerated freefalling is the easiest way for a novice to experience jumping without being tethered to someone. 

 

In this situation, the diver jumps and is joined by two instructors who hold on to their waist or arms, assisting in positioning techniques, and instructing them on when to pull the ripcord. Once this happens, the divers are on their own, enjoying the scenery from under the canopy of the parachute. These kinds of jumps are preceded by ground training sessions on positioning, instrument checking and emergency deployment.

 

After a number of assisted jumps, training exercises and courses, individuals will be able to obtain a license, allowing them to jump on their own in future. 

A typical jump takes place from between 12,500 and 18,000 feet, and jumpers can experience up to 185km/h before having to pull the cord between 4000 and 6000 feet above ground level. 

 

In order to determine how high they are, jumpers use altimeters attached to the wrist. Once they've reached the pull altitude, the ripcord is pulled, and the pilot chute is deployed, which creates drag and subsequently pulls the main chute out of the bag. 

 

Failsafe procedures follow if the chute fails to deploy, and emergency chutes are either automatically deployed, or have a dedicated mechanism to allow deployment. Modern packs are also equipped with advanced detectors that will automatically deploy the chute if the diver crosses a certain threshold while still in freefall. 

 

When freefalling, typical positioning is the spread eagle position, with both arms and both legs spread out horizontally in line with the torso, creating some level of drag and stabilizing the body to balance when the drag of the chute is initially felt.

 

 

Written by Wesley Geyer

Creative writer at ATKA SA

Mountain biking in South Africa

South Africa is widely known as one of the most scenic countries in the world. Landscapes vary significantly from region to region, and because of that, many nature enthusiasts have taken to exploring it in any way they can. 

 

Mountain biking is one of the most fast-paced and exhilarating ways to explore the terrain, and South Africa has some of the best trails in the world.

 

The following is a list of a few of South Africa’s choice routes, adapted from various sources and related lists.

 

Baakens River – Intermediate to Difficult (24km)

 

The Baakens Valley is a long and narrow green-space running through the heart of the Port Elizabeth metropolitan area. It stretches in a general east-west direction from just above the harbour to the western outskirts of Port Elizabeth, on the Cape Town side of the city.

 

Local riders rate the contour paths and jeep tracks as one of the best urban rides in South Africa. Expect sharp climbs, rutted downhill’s and heaps of obstacles to test your technical skills to the max. For personal safety reasons, it is always recommended that you cycle the route with a friend or two.

 

Longmore Forest Route – Moderate – Various Lengths

Situated close to Port Elizabeth, this seemingly endless network of gravel roads (840km according to the resident plantation manager) will put miles into your legs, with more than enough jeep-track links to keep it adventurous. Park at the Longmore offices, then head uphill along the gravel road and follow the Kings View signs for an enjoyable 90min (or up to 5-hour) circuit.

 

 

Woodridge/Thornhill XC – Moderate/technoical – Various lengths

 

Your first stop is Woodridge School, one of the few educational institutions in South Africa to boast its own Nationals-quality XC (cross-country) route. The purpose-built route offers some exhilarating and challenging single track riding. It’s great on a windy day, as the plantation offers both shelter and shade. Permits are required and these must be shown at the gate when entering the premises. No less than 95% of the 8km course is groomed single track, dipping and diving through forest sections, plantations and some open grassland.

 

From Woodridge, it is a doddle to get to Thornhill, a tiny village just across Van Staden’s Gorge and approximately 6km further along the N2. This is a more recent, but no less exciting riding venue, catering to both rookie riders and the more hardcore XC racing snakes. Local mountain biker Grant Puttergill has put together a killer 6km route on his Sunny­vale farm, and again you will be bombing into a veritable single track paradise.

 

PwC Toyota Cycle Park – Beginner to expert – Up to 15km

 

Situated in Bryanston, Johannesburg, this secure cycle park offers custom built single-track trails for mountain bikes that are suited for all ages and all skill levels. All the routes are graded, clearly signposted and include beginner, intermediate and advanced circuits. Besides the many kilometres of man-made trails, there is also a world championship standard BMX track at the park.

 

The obstacles increase in number and complexity as the grading goes from novice to advanced level. Enjoy the single-track and tight turns that will make you concentrate on your cornering techniques on the easier trails before heading into the intermediate trails where you will have to pay a bit more attention, as on these you will have to deal with a drop or a log or a steep bump to avoid being bounced off.

 

For the expert riders, the ladder bridges and berms will assure some exhilarating cranking and a serious rush of adrenalin. And finally for the hooligans looking for interesting ways to commit suicide by mountain bike, the Dirt Jump Heaven seems like the right place to be. 

 

 

Written by Wesley Geyer

Creative Writer at ATKA SA

Fuel Prices over the past few years

As a country we hang our heads in defiance when hearing another announcement of a fuel price hike. Over the last ten years the price of petrol per litre has more than tripled. 

 

Let’s look at fuel prices over the past few years and also discuss some factors that contribute to the consistent rise of fuel prices.

 

 

The above image (sourced from www.cars.co.za) may be no news to you. In 2003 South Africans had to pay R4.00 for a litre of petrol.

 

This sound unrealistic in comparison to what consumers must pay now. On average, the petrol price gains nearly a rand a year, although the jumps in the prices have been erratic. Between 2003 and 2013 the petrol price was pushed up with a whopping 339%!

 

 

The year between August 2008 and August 2009 have seen a drop of nearly R2,50 per litre – a welcome reprieve for consumers in South Africa. But the last 4 years has seen the price nearly doubled.

 

This leads us to ask the question – why do fuel prices rise and fall constantly? What factors determine the cost of filling up my car? In the long term the biggest factor influencing fuel prices is the cost of crude oil. In the marketplace however, factors include forces of supply and demand and also competition.

 

Figures released in July of this year indicate that nearly 28% of fuel costs are attributed to taxes. This means that R3,69 of the R13,23 per litre goes to tax. Other factors that influence the fuel price are local market conditions such as supply, demand, competition and government regulations.

 

In the short term supply and demand imbalances will definitely affect prices. Supply shortages due to whatever reason (including transport and worker strikes) will typically cause an upward price pressure. Length of supply, where supply exceeds demand, can result in a downward price pressure.

 

Due to the fact that our oil is  mostly imported, foreign exchange and geographical location play an important role in determining the fuel price. Consumers who live in coastal areas will typically pay a lower price due to the fact that they bypass the costs of transporting fuel inland.

 

So what awaits fuel consumers in the future? Well, that’s difficult to determine with certainty. Some fuel suppliers are starting to implement a comprehensive national energy policy that addresses both fuel conservation (in other words, reducing demand) and increasing the supply of crude oil and refined products. This includes streamlined permitting for petroleum infrastructure as well as increasing domestic oil production in environmentally responsible manners.

 

Ultimately fuel prices are determined by global supply and demand and the market will always decide the price. Consumers who are finding the fuel hikes problematic, should look for alternatives such as public transport or carpooling. 

 

In the end fuel is a much needed commodity, regardless of the effect on its consumers’ pockets.

 

 

Writtem by Marleen Theunissen

Creative writer for ATKA SA