Dear Reader

This week, our Tax Helpdesk received 3 separate tax queries on the matter of keeping logbooks and their tax implications. Here’s one of those queries, with a very interesting response from Prof Marius Maritz.

Prof Marius Maritz has been tackling your tax queries on the Tax Helpdesk, and already, he has saved you millions in tax! Now, that’s a great reason to be subscribed to The Practical Tax Loose Leaf Service. No other service gives you access to this sort of personalised, prompt response.

Question: Does the boss also need to keep a logbook, or can we simply reimburse him?

My client is a business owner, who employs staff. He has always used his own car in his business and he pays for fuel, insurance and other related expenses himself. The company would then pay him back a percentage of those expenses, including depreciation.

Is this right? Must he keep a logbook to justify this “expense allowance?”

Answer: As from 1 March 2010, directors and employees who are paid a travel allowance MUST keep a logbook to record business travel. How else can they prove their claims, and the reimbursement from the company? So get all you employees (Including the boss) into the habit of keeping accurate logbooks as soon as possible.

To find out more, refer to chapter C05 in the Practical Tax Loose Leaf. We answer one of the most popular questions in taxation is: “Which is better, a company car or a vehicle allowance?” The answer is tricky and depends on your particular situation.We also investigate the options, benefits and consequences of each choice.

See how easy it to get practical tax advice! All you need to do is subscribe to the Loose Leaf and you’ll get 500 pages of tax tips, tools and checklists on everything from tax audits, to bad debt and employment contracts, company cars and medical aid contributions…

Plus, you get access to the Tax Helpdesk. Send us your burning tax question and Prof Marius Maritz will answer it for you in 72 hours! He's got the know-how to make very complicated tax dilemmas, easy to understand. Plus, he provides you with step-by-step instructions on how to apply it to your business.

Other questions our Tax Helpdesk tackled this week:

• May I please have a tax code for claiming an exemption of s10(1)q for a bursary given to a relative?
• If we cover fuel costs for our employee, would he have to pay more taxes?
• Is it necessary for a member of a CC who works in the business to pay UIF?

Like I said, when you subscribe to the Practical Tax Loose Leaf Service, you’ll also have access to our tax Helpdesk, where we answer your tax questions by email within 72 hours.

For access to our Tax Helpdesk, start your 14 day risk-free trial of the Practical Tax Loose Leaf now! You'll benefit from invaluable tax tips, tools and checklists too.

Until next week,

Lenell Hattingh