Do I need a log book for a sole proprietor

By Marc Sevitz · Updated

Hi Tim, I am a sole proprietor and have a question about deducting my vehicle and petrol for business use. Currently I am deducting 70% of my vehicles monthly installment as well as 70% of my fuel costs from my taxable profit. However I have not been keeping a log book, the 70% is an estimate which in my opinion is a bit lower than my actual business use. Almost all my mileage is for business use. Could I get in trouble for this? Do I need to keep a logbook? If ever asked by sars I could give a detailed explanation of how I got to 70% as I basically do the same business route everyday (go to the post office, visit manufactures etc. . . )

TaxTim Marc

TaxTim Marc said:
2 March 2015 at 7:35

You need to maintain a logbook at all times, otherwise SARS will not allow you to deduct the travel expenses unless you can reasonably justify this apportionment somehow. Unfortunately the best way is via a logbook.
Independent Contractor
Provisional Tax
Deductions
Commission
Depreciation / Wear and Tear
Travel Allowance