One of the many business tax services offered by PATC (Professional Accountants and Tax Consultants) is assistance with travel claims. Travel allowances and the claiming of travel deductions under the present tax system will ultimately be phased out. Every year we see SARS shutting the door a little tighter on the popular benefit. If you play your cards right, you can still use the allowance to your tax advantage.
Travel Claim Tips
Consider the following business tax services tips to help you make the most of your travel claims:
- The logbook is the key to maximising the tax benefits of your travel allowance. This book distinguishes between business and private travel on a daily basis, and includes mileages to and from various destinations. Bear in mind as of 1 March 2010, if you receive a travel allowance, a logbook has become compulsory for you.
- SARS deems the first 18000km to be private, therefore limiting your business mileage to 14000km. However, if you travel less for private reasons and more on business, an accurate logbook can save you thousands.
- Who benefits from a travel allowance?
- Sole proprietors
- Commission earners
- Independent contractors
- Employees who receive a travel allowance
- Employees, Directors, members and others who use a company owned vehicle
- If you use your company car, you are only taxed on the private use of that vehicle. This portion is known as a fringe benefit. Tax on private use of a company car can be reduced:
- Where you carry the cost of maintaining the car
- Where your private travel is less than 10,000km
- Where you carry the cost of running the car (fuel)
- You may claim wear and tear deductions on your personal car used for business purposes, but this only applies to commission earners, sole proprietors and independent contractors.
- Be aware that SARS conducts random audits on individuals to test the accuracy and truthfulness of the travel expenditure they have claimed.
Download the new SARS logbook from http://www.sars.gov.za/TaxTypes/PIT/Pages/Travel-e-log-book.aspx and further business tax services assistance in maximising your tax benefit, call our team today.