Wow seriously thanks for the response that was really useful even though I live in South Africa so I'm sure there are differences in the systems that I need to find out. I'll definitely pop into your tribe and take a look though.
One thing I would like to ask as a follow up question (I'll bare in mind any answer you give is related to the US and not here), if you don't mind, is about the mileage records. My car is both for personal and work purposes. So I want to ask, is a written logbook of the mileage (i.e. odometer reading before work and after) sufficient evidence of my usage of my car for work purposes? I would truly intend to be as honest as possible but surely they would expect (as the standard) that everyone is trying to cheat the system, and so expect some means to prove your claims in the logbook? This is why I thought logging with refuels were done because a lot of fuel attendants ask the mileage and so I assumed it goes on the receipt which then I thought could be used to validate your logbook. Or am I over thinking this?
Edit It should be noted that I used to suffer from sever irrational anxiety attacks and due to treatment I am doing a LOT better. Having to one day manage my own taxes was one of the triggers to such attacks. So although my fears may seem irrational ("may go to prison"), before I would never have even considered starting my own business, solely because I would be 100% responsible for my tax. So hopefully I may even become comfortablewith the idea one day haha :P
South Africa, interesting. I've had some experience with different international tax systems, but I have to admit that I've never dealt with South African taxes before. So I'll give you a perspective for how things are done in the US, but it's definitely a good idea to find a South African accountant. They should be familiar with the tax code there, and ease your worries.
From my experience with small business clients, keeping a logbook of odometer readings will put you ahead of most other businesses as far as record keeping goes. Here in the US, there are no attendants when you refuel your car, so the only time when odometer readings are done by others is when you get your oil changed or some larger repair. Because of that, the IRS has suggested vehicles that are used for business to get an oil change around the beginning of the year and again at the end of the year, and keep the odometer readings. However, if the car isn't used for business 100%, this wouldn't solve the problem of separating business from personal miles. But a logbook should take care of it.
Wow seriously thanks for the response that was really useful even though I live in South Africa so I'm sure there are differences in the systems that I need to find out. I'll definitely pop into your tribe and take a look though.
One thing I would like to ask as a follow up question (I'll bare in mind any answer you give is related to the US and not here), if you don't mind, is about the mileage records. My car is both for personal and work purposes. So I want to ask, is a written logbook of the mileage (i.e. odometer reading before work and after) sufficient evidence of my usage of my car for work purposes? I would truly intend to be as honest as possible but surely they would expect (as the standard) that everyone is trying to cheat the system, and so expect some means to prove your claims in the logbook? This is why I thought logging with refuels were done because a lot of fuel attendants ask the mileage and so I assumed it goes on the receipt which then I thought could be used to validate your logbook. Or am I over thinking this?
Edit It should be noted that I used to suffer from sever irrational anxiety attacks and due to treatment I am doing a LOT better. Having to one day manage my own taxes was one of the triggers to such attacks. So although my fears may seem irrational ("may go to prison"), before I would never have even considered starting my own business, solely because I would be 100% responsible for my tax. So hopefully I may even become comfortablewith the idea one day haha :P
South Africa, interesting. I've had some experience with different international tax systems, but I have to admit that I've never dealt with South African taxes before. So I'll give you a perspective for how things are done in the US, but it's definitely a good idea to find a South African accountant. They should be familiar with the tax code there, and ease your worries.
From my experience with small business clients, keeping a logbook of odometer readings will put you ahead of most other businesses as far as record keeping goes. Here in the US, there are no attendants when you refuel your car, so the only time when odometer readings are done by others is when you get your oil changed or some larger repair. Because of that, the IRS has suggested vehicles that are used for business to get an oil change around the beginning of the year and again at the end of the year, and keep the odometer readings. However, if the car isn't used for business 100%, this wouldn't solve the problem of separating business from personal miles. But a logbook should take care of it.
Awesome, thanks again for taking the time to respond to me :)