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Five examples of how SARS treats specific travel

by , 20 September 2015
Do you run a business as a close corporation, a partnership, company or sole proprietor? And do you use a vehicle for business purposes?

If so, then you can deduct the business expense in terms of the general deduction formula.

But how exactly does SARS treat travel?

This is a questioning that you may be wanting an answer for.

The answer requires you to understand the purpose of travel. In other words, business as opposed to non-business purposes.

So, here are five examples of how SARS treats specific travel, whether it is for business or not:

Exampel#1:

Travel to and from your home and business isn't considered business travel.

Exampel#2:

Travelling between two distinct businesses which are both run by you isn't business travel.
 
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Do you...

1.    Structure your salary to pay less tax?
2.    Claim tax deductions on your expenses?
3.    Rely on your accountant or tax consultant to do your taxes?
4.    Charge Vat?
5.    Pay tax provisionally?

If so, then you're just another one of several companies that could be committing financial suicide.
 
 
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Exampel#3:

If your office is at home, then travelling from your home to clients is considered to be business travel.

Exampel#4:

Directors can't deduct expenses for travelling between different places for directors' meetings.

Exampel#5:

If you travel directly from your home to a client, without stopping at the office along the way, is deductible.
 

There were five examples of how SARS treats specific travel.

To find out more examples, click below…
 
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