When can you claim for travel?
The Income Tax Act No.58 of 1962 allows taxpayers who receive a travel allowance to claim a deduction for the use of their private vehicles for business purposes. It is important to note that you can not claim travel between your home and workplace as it is deemed private use.
What do I need to do to claim against my travel allowance?
The first step is to record your vehicle’s odometer reading on 1 March each year (the first day of the tax year for individuals) and again on the last day of February the following year (the last day of the tax year for individuals). The difference between the closing and opening readings will give you your total kilometres travelled for the year.
It is now compulsory to keep a logbook of all your travel in which you record your business kilometres if you want to claim a travel deduction. The logbook must contain the following minimum information relating to your business travel:
- Date of travel
- Kilometres travelled
- Travel details (where to and reason for the trip)
At the end of the tax year, split your private and business kilometres travelled during the tax year and claim your business kilometres travelled in one of the two following ways taking the below notes into account:
- Calculate your claim based on the Fixed Costs Table supplied by SARS each year. You need not have kept an accurate record of all your expenses – use the costs linked to your vehicle’s value as provided by SARS. View the Fixed Cost Table: 1 March 2021 – 28 February 2022 below.
- Alternatively, calculate your claim based on the actual costs. You will have to have kept an accurate record of all your expenses during the year, including fuel, maintenance, lease, and insurance costs.
- The claimant can not claim fuel costs if he/she has not borne the total cost of fuel used in the vehicle.
- The claimant can not claim maintenance cost if he/she has not paid the total cost of maintaining the vehicle (e.g. if a maintenance plan covers the vehicle’s maintenance).
- The claimant must reduce the fixed cost claimed on a pro-rata basis if he/she did not utilise the vehicle for business purposes for the entire year.
- If the claimant used more than one vehicle during the year, the claimant should keep a separate logbook for each vehicle.
- SARS uses both the actual distance travelled during a tax year and the distance travelled for business purposes (substantiated by a logbook) to determine the allowed costs claimed against a travel allowance.
SARS Fixed Cost Table 2021 to 2022
|Vehicke Value From incl. VAT - ZAR||Vehicke Value To incl. VAT - ZAR||Fixed cost -ZAR p.a.||Fuel cost - ZAR/km||Maint. cost ZAR/km|
Note: Vehicle value above ZAR 665.000 is unlimited. ZAR 9.999.999 is an arbitrary number used in a floating point table column.