FBT and Logbook Requirements

FBT – Log book requirements

With the FBT year-end fast approaching, it may be a good time to review your internal procedures to reduce the FBT liability for your business. As a firm, we prepare numerous FBT returns for clients across various sectors and one of our most frequent recommendations is for our clients to keep log books for their motor vehicles. With the change to statutory percentages in 2011, the costs of owning motor vehicles in an entity (companies or trusts) have increased and keeping a log book may be a better option than to use the 20% flat rate where the business usage for the vehicles are high.