Vehicle expenses for business
By Marc Sevitz · Updated
When I was a sole proprietor, taxed under my own name, if I drove somewhere on business-related matters, I used my own vehicle. I then claimed those business kilometres as a proportion of the total expenses and depreciation on my vehicle over the course of the tax year. Now I have a (registered) private company - can I still follow the same process, and claim the travel expenses as a tax deduction for my BUSINESS? If not, what are the options for me?
How many km do you do a year for business?
About 4000-5000km
It would be best to then have the company pay you a R3.18 per km claim for your business travel as a reimbursive allowance. This will be a deduction for the company and you will not be taxed on the difference.
Thanks for the feedback. Can I ask, on what basis did you get the R3.18/km figure - is that standard for all vehicles? [btw, my vehicle is a Suzuki SX4 AWD]. Also, what do you mean when you say "you will not be taxed on the difference"? Do you mean I won't get taxed on that income under my personal name? Thank you for your help!
R3.18 is the SARS rate per km which is not taxable in your hands if paid as a reimbursed allowance.