Price Your Products for Profit with these Psychological Strategies
Nothing is more important when running a successful business than pricing your products accurately. Most business leaders are already examining the maths, costs and business
With both fuel and vehicle ownership costs at historic highs, it is more crucial than ever for taxpayers to keep accurate, up-to-date and securely stored logs of all business travel as well as proof of related travel costs. This is because expenses related to business travel can be deducted from taxable income – but only if a logbook that complies with SARS requirements is kept current for each vehicle and stored as per the regulations.
There are also several other tax implications relating to travel expenses, travel allowances and reimbursements for business travel. To maximise the tax benefits related to business travel for both a business and its employees, speak to your accountant to fully understand the tax implications for all concerned.
“Without a logbook, you will not be able to claim a travel deduction.”
SARS Travel Logbook 2022/23
Even while recovering from the economic impact of COVID and facing the challenges of power blackouts, businesses and their employees are also contending with the costs of travel that have reached historic highs. Thankfully, expenses related to business travel can be deducted from taxable income – reducing the tax liability for taxpayers, including businesses, employees, commission-earners and independent contractors. All these taxpayers should prioritise maximising the available tax deductions by ensuring they can claim for every actual business travel-related expense.
This is increasingly important given the rapidly rising costs of travel, fuel and vehicle ownership. Fuel prices have more than doubled over the last five years and continue to set new records. In addition, Wesbank recently reported that the monthly cost of vehicle ownership for an average entry-level vehicle is 33% higher than five years ago and has increased 32% between November 2021 and November 2022.
To claim any business travel expenses, it is compulsory to keep an accurate and up-to-date SARS-compliant logbook for each vehicle. In addition, there are other tax implications related to travel expenses, travel allowances and travel reimbursements, some of which are briefly highlighted below.
Claiming the business travel deduction – fast facts
How to claim a business travel tax deduction
Tax implications to beware of
To maximise the tax deductions related to business travel, make sure that an accurate and up-to-date SARS-compliant logbook is kept current for each vehicle and each employee with a travel allowance, and that you consult with your accountant to understand the many tax implications for all concerned before making decisions regarding business travel.
We pride ourselves on offering cost-effective payroll and HR solutions, and on the enhanced levels of confidentiality, integrity and trust we bring to each project.
HRPT alleviates business owners’ stress and costs when it comes to dealing with HR Management. We offer innovative and effective, tailor-made and practical HR solutions that meet your exact business needs.
Nothing is more important when running a successful business than pricing your products accurately. Most business leaders are already examining the maths, costs and business
Government’s approach to balance this year’s National Budget 2024 shortfall of R15 billion didn’t set a positive example for South African individuals and businesses that
Copyright 2022 – HRPT. All rights reserved.
Powered by NEMAGLO Digital