Many payroll professionals struggle to come to grips with the SARS travel allowance declaration, and employees feel the pinch at year end when they are required to pay in to SARS on assessment for not maintaining accurate records of their business travel.

 

Travel allowance versus reimbursive travel

A travel allowance should only be granted to employees who travel for business to finance a portion of their business travel cost and they need to meet a number of requirements in order to claim travel allowance deduction from SARS.

 

Some of these requirements include maintaining a log book, recording the total distance travelled for business and personal use and proof of travel expenses should be retained. On assessment employees can claim against costs related to wear and tear of their vehicle, maintenance and repairs, vehicle license costs, insurance costs, and finance charges.

 

Types of travel allowances:

• Travel Allowance – employees own car

• Use of Motor Vehicle – employee using company car

• Re-Imbursive Travel – taxable & non-taxable depending on the rates employees are refunded at.  Do you know the SARS prescribed rates to save your employees tax?

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We will send you a handy LOG BOOK so you can keep accurate records so your employees have peace of mind at Tax Assessment date.