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Apply these three tips to get the most out of your travel claims

by , 06 March 2014
Do you give your employees a travel allowance? If so, make sure they use these three tips to maximise their travel claims.

Three travel claim tips you need to know about

In terms of the Income Tax Act (ITA), taxpayers who get a travel allowance can claim for travel expenses if they use their private cars for business purposes.

Today, we're going to give you three useful tips for travel claims that you can apply to travel allowances in your company starting today.

The Professional Accountants and Tax Consultant says you must consider the following business tax services tips to help you make the most of your travel claims:

#1: 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.
You must keep this logbook throughout the year. Also bear in mind that SARS says without a logbook you won't be able to claim the cost of business travel against your travel allowance.

The good news is the 2014 eLogbook is now available. Simply download it and record your business travels.

#2: If you use your company car, you're only taxed on the private use of that vehicle. This portion is known as a fringe benefit. The Professional Accountants and Tax Consultant says 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)

#3: You can 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.

In this article we highlighted that if you keep an accurate logbook by recording the date, kilometres travelled and the details of the trip, things will be easy for you when you submit your employees'ITR12 return.

Also 'be aware that SARS conducts random audits on individuals to test the accuracy and truthfulness of the travel expenditure they have claimed,' says the Professional Accountants and Tax Consultant. So don't be caught off-guard.

Using these tips will help you maximise your travel claims, but the most important thing is they'll also help you stay on the right side of the law.

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