Tax on my travel allowance
By Nicci Courtney-Clarke · Updated
My employer is satisfied that only 60% of my travel allowance will be for business purpose, do I only include the 60% in my monthly payslip for PAYE purposes or do I revert back to the 80/20 rule?
The standard practice is to tax 80% of the travel allowance. This is based on the assumption that you travel 80% for personal reasons and 20% for business. The only exception is if you are satisfied that your business travel is significantly more than 20%, then your employer can choose to tax only 20% of your allowance (where 80% business use is assumed).
It is up to you at year end to submit a detailed logbook to SARS with details of your actual mileage (both personal and business) and SARS will perform a detailed calculation on assessment which may result in a refund if it turns out that you paid too much tax in the year. If you fail to submit a valid logbook, or travelled less than expected for business, you will have a tax bill to settle when your tax return is assessed by SARS.
Click here to access TaxTim's free digital travel logbook.
It is up to you at year end to submit a detailed logbook to SARS with details of your actual mileage (both personal and business) and SARS will perform a detailed calculation on assessment which may result in a refund if it turns out that you paid too much tax in the year. If you fail to submit a valid logbook, or travelled less than expected for business, you will have a tax bill to settle when your tax return is assessed by SARS.
Click here to access TaxTim's free digital travel logbook.