Travelling Allowances

Taxpayers who receive a travel allowance are allowed to claim a deduction for the use of their private vehicles for business purposes. The travel between home and work is regarded as private travel and cannot be claimed.

To obtain a deduction the taxpayer must:
- Record your vehicle’s odometer reading on 1 March each year and the last day of February. These opening and closing readings give you your total kilometres travelled for the year.
- You need to calculate what portion of the total kilometres travelled was for business use and what portion was for private use.
- Keep a logbook per trip of all your travel in which you record what travel was for business and what travel was for private purposes.

You now have two choices:
a) You can calculate your claim based on the table of costs supplied by SARS each year. You need not have kept an accurate record of all your expenses – simply use the costs linked to the value of your vehicle.
b) Alternatively, you can 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.

Please keep your logbook for five years as you may be required to submit it to SARS for verification of your claim.

For more information on travel allowances, please refer to page 6 to 8 of the electronic tax guide by following this link

Or contact our office for further assistance.

Kind regards,

Kirkman Lanfear
Tel: (021) 465 - 6023
Fax: (021) 465 - 6089