Do you have a log book?

When claiming for business/work-related car expenses, many miss out on maximising their deduction due to inadequate record keeping.

Also, failing to maintain a valid car log book can cost taxpayers dearly in the event of a tax office audit.

Did you know that without a log book the tax office deems your vehicle business use to be 0%?  If you don’t have a valid log book we may not be able to maximise the deductions for your fuel, insurance, rego, repairs/servicing and other motor vehicle costs.

Who should complete a log book?

An individual wanting to claim a motor vehicle deduction if they have travelled more than 5,000 business/work related kilometres.A company or trust which has any motor vehicles.

How do I complete a logbook?

You can purchase a logbook from most newsagents or better yet keep your logbook electronically by downloading an app on your smartphone. The logbook must be kept for a continuous 12-week period that must be reflective of your typical travel throughout the year.

For each journey during the log book period you need to record:

• start and finish times
•  odometer readings at the start and end of the journey
•  kilometres travelled
•  reason for journey (in the ATO’s view when noting the purpose just saying “business” will not be enough, more description is required).

What Next?

The requirements in keeping a log book can be complex. Feel free to give us a call on 07 5451 1118 or drop us an email at reception@mjjacountants.com.au

We are a small business accounting service located on the beautiful Sunshine Coast and would appreciate the opportunity to help you, your friends, family and colleagues. Contact us on 07 5451 1118 for an obligation-free confidential discussions today.