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Travel
Allowance

Travel Allowance. The Employer must include 80% of the travel allowance in the employee’s remuneration to calculate PAYE. The percentage is reduced to 20% if the employer is satisfied that at least 80% of the motor vehicle’s use for the tax year will be for business purposes. According to the Fixed Cost Table provided by SARS, the employee can claim business kilometres travelled during the year provided that the claimant kept a vehicle logbook. Click on this link for more on Travel Allowance.

Click on the icon above to view the SARS Fixed Cost Table 2021/22.

Vehicle logbooks come in many shapes:

  • There’s an App. Visit the Google Play or App Store to find a vehicle logbook app.
  • Vehicle Tracking Companies. Your provider might have this functionality available to you as part of your vehicle tracking service.
  • Stand-alone USB & OBD port GPS Loggers. Google USB/OBD logbook.
  • Excel spreadsheet.
  • Pen & paper.

An electronic vehicle logbook records even when “Life Happens” and is worth the investment. Don’t get caught short at the end of the tax year!

Note:

  • 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).
  • 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.