This entry was posted in Tax Q&A and tagged Independent Contractor, Provisional Tax, Deductions, Commission, Depreciation / Wear and Tear, Travel Allowance, Audit / Verification. Bookmark the permalink.
26 April 2022 at 10:57
Can a sole proprietor (extra income, working from home) claim for vehicle maintenance (I do most maintenance myself, but have invoices for the parts) and insurance if he did not keep an accurate logbook?
26 April 2022 at 17:05
A Sole Proprietor must submit a logbook to claim travel expenses. The business kilometers traveled during the tax year, with a logbook to prove such, is important. It allows the sole trader to verify (to SARS) the apportionment of the vehicle expenses for business use.
A Sole Proprietor uses their own vehicle for both business and private travel, however only the portion of total motor vehicle expenses relating to business use will be deductible. You must submit a detailed travel logbook and calculation (which shows how you worked out your travel deduction) in order to claim the travel expense.
Please see an example of how to work out your business travel claim assuming you drive for business and private purposes.
Total km travelled = 14 500km
Business km = 10 000km
Total motor vehicle expenses = R27 500 (fuel R15 000, maintenance and repairs R1 500, insurance/licence R5 000, finance charges R6 000).
Business travel claim (actual costs method):
Business km to be claimed = 27 500 * 10 000 km / 14 500 km = R 18,965.52
Kindly see our Travel allowance calculator to assist you in doing your calculation.