Audit Alert! How to make sure you log your FBT correctly.
The ATO is now putting more scrutiny on correctly logging your FBT for vehicles. We recently had a request for a copy of a logbook at Aintree Group.
So it’s more important than ever to get a logbook (and actually use it, for at least 12 weeks).
If you find paper logbooks to be less than practical, there are a range of apps available on iTunes and Google Play where you can log your travel using GPS data, or manual entry. Most apps will then send a report to either yourself, or your accountant via email.
The ATO accepts logbooks from apps provided they are in English, and can be accessed at any time.
Obligations if you provide fringe benefits:
Calculate how much FBT you have to pay…
Employers must self-assess and calculate how much FBT they must pay each FBT year.
Keep the necessary FBT records…
The FBT law requires employers to keep certain records relating to the fringe benefits they provide.
Register for FBT…
We recommend employers register once they establish that they must pay FBT.
Report fringe benefits on employee payment summaries…
Employers must report certain fringe benefits on employees' payment summaries.
Lodge an FBT return and pay FBT to the Tax Office…
A return covering the FBT year, which runs from 1 April to the following 31 March should be lodged by 21 May each year.
Find out more on the ATO website.
You can try out the following free apps and programs to help with your FBT logbook:
Driversnote Mileage Logbook
Tracks your trips, and makes the proper documentation for your mileage claim. The Driversnote App is for employees, employers as well as self-employed, and can be used to document the mileage of both private and business trips.
Trip Tracker Mileage Logbook
TripTracker is automatically written by using GPS, Bluetooth-Detection, reverse Geocoding or OBDII data. In addition, you can also manage vehicle costs to keep an overview.
TripTracker has a synchronization mechanism that allows you to collect and edit your mileage logbook across multiple devices. There is also a web interface which allows you to analyze your data on a PC or Mac.
Reduce your taxable income and get your full mileage reimbursement, with this refreshingly simple mileage log and tracker app.
No more fumbling around with excess app features and having to work out the steps to get things done.
Straight to the point, Vehicle Logbook lets you record your vehicle mileage (or kilometres) in the least amount of time possible.
Real-time expense reporting integrated with Xero, available in Xero HQ for accountants and bookkeepers.
Something else to check out (for employees)
Still not sure about your FBT obligations? Get in touch with us.