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Three company car tax savers to shed thousands off your tax bill

by , 14 November 2013
Do you know you can shrink your company car tax bill? Do you know how to?

If not, then spend five minutes reading this. I guarantee you'll save thousands off your company car tax bill.

Read on to discover three company car tax savers.

14 Practical examples make your travel calculations in minutes

Spending time trying to calculate all the variables of company cars vs. travel allowances can be frustrating not to mention complicated.
Well, you don't have to pull your hair out anymore. Click here for more

Three company car tax savers to shed thousands off your tax bill
Company Car Tax Saver #1: Buy a car WITH a maintenance plan
You can reduce the taxable fringe benefit of the company car from 3.5% to 3.25% of the car's determined value, IF the cost of the car includes a maintenance plan.
Company Car Tax Saver #2: Use depreciation to shrink the tax bill over time
You can depreciate the car's determined value at a rate of 15% per completed 12 months, to shrink your employee's tax bill over time.
Read on for your last Company Car Tax Saver

If you know the difference between a company car and a travel allowance you can save thousands.

Here's how

Company Car Tax Saver #3: If your employee uses the car mostly for business, reduce the taxable value to 20%
You can reduce the taxable value of the fringe benefit to 20% – if the employee uses the car for at least 80% business purposes. But he must be able to prove this to you – so insist that employees keep a logbook!
Don't try apply the 20% taxable option if the employee can't prove the 80% business use of the car. SARS will disallow this and could slap you with penalties!
So, use these today and save your company money.
Until next time,
Natalie Cousens
P.S. For a more detailed look at these tax savers, get your copy of Your guide to taxing company cars and travel allowances today.

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