If you need to utilise a FBT log book, it is essential to know the requirements and properly maintain them. You can significantly reduce any business by properly maintaining the FBT log and keeping track of the vehicles used to run your business.
1. Recorded information
- It is also essential to know what information needs to be recorded in an FBT log book.
- First of all, the date of the trip and when the trip was taken and when you got back.
- At the beginning of the journey and after the trip taken, the total on the odometer must be recorded.
- How many kilometres the trip took.
- The reason for taking the trip.
When recording what the trip was for, make sure the entry thoroughly describes the reason for the trip, what business is accomplished, and if it was a success for business purposes. English should be used for all logbook entries and recorded right after the trip is finished. The logbook must also show the period when this trip took place. If it is continuous, two years can come one after the other in the FBT logbook, and one log can be recorded for five years. If there is a constant business pattern; after this period, a new FBT logbook is required.
You have to keep 12 weeks of recording for the odometer, and you have to keep a record of how much was on the odometer when the trip started and when the trip ended for the entire period. The precise kilometres travelled during the business trip must include not only the time but also the date. For each trip, record why it was taken and how many kilometres were travelled. Precise client details must be added as well as the address for each round trip.
The FBT logbook’s validity won’t be infringed if there is a lack of some odometer readings. However, if this does happen, you have to gather the necessary information from a business calendar or any other business information source after adding this information in the logbook so that you have accurate records.
A logbook must be kept for 12 weeks of the first earning year. This period has to be a representation of all of the business trips taken during the year. If during this time in less than these 12 weeks you chose to use your own car for business, you can continue to use the logbook into the following year. Each journal kept is valid for five years. However, a new logbook can be started at any time. If at any time there are changes in your business, you might be required to open a new record.
2. Maintaining tips
- A declaration needs to be kept on file that shows the opening and closing of the odometer readings.
- Always use the method referred to as operating cost.
- With a continuous pattern of usage, there is no problem, but if changes suddenly occur, the logbook might become invalid, and a new one should be started.
You can record information for more than one car using this method as long as it covers the same period of 12 weeks. You can also claim depreciation or decline in the value of a vehicle, but you can claim it only on the business portion of the vehicle’s cost.