Is it possible to claim business kilometres and structure your salary to have a car allowance?
By Marc Sevitz · Updated
Your allowance will be taxed at 80% only and not at 100% and you will be able to claim back the business element of the allowance that you were taxed on. You will need to justify that you spend enough time travelling or do enough mileage to keep this allowance. You must keep a logbook at all times.
Will it be okay to claim the kilometres I have travelled monthly from the company while I am getting travel allowance?
Do you travel for work purposes?
Yes, I do travel for work purpose
Then you would be able to claim the business km's and reduce your taxes, however this is only done when you submit your return, not when you receive your monthly salary.
Meaning , I should not claim the kilometers travelled during the month?
No, you cannot claim during the month. You will be taxed on the travel allowance monthly and then at year end you make the claim for the km, provided you keep a logbook.