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Three company car tax tips you can use immediately

by , 12 October 2015
You work hard for your money. You have every right to not pay taxes unnecessarily. But, the risks associated with non-compliance are costly and unnecessary.

I have found three ways you can pay only what you have to in taxes with these three company car tax tips.

Read on to find out more.

*************Just for you*************
 
The company car. An employee's favourite perk. An accountant's little time bomb.
 
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.

Here are 14 practical examples to make your travel calculations in minutes.

 
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Tip #1: Exempt your company vehicle from fringe benefit tax

A vehicle isn't considered a taxable benefit if it's available to all employees to use. Or if the employee's duties require regular business travel outside normal hours of work and no private travel is done, except:
  • Travel between home and work;
  • Incidental private travel; or
  • Infrequent private travel.
 
Tip #2: Watch those accessories

Be wary of the accessories!
 
If the vehicle comes with accessories, the determined value will increase, which means you'll pay more tax.
 
But if you take possession of the vehicle without accessories, and then you add these, the determined value remains the original cost of the vehicle.
 
Read on for your final tip.
 
*************Recommended*************
 
How to legally minimise your taxes

Ever wished for a quick reference guide on complicated tax matters? Here is the answer to your prayers.
 
99 Tax Tips covers topical, everyday questions on personal and business taxes in easy-to-read English. Often- complicated tax concepts have been transformed into practical, extremely useful information.
 
See how to legally minimise your taxes; learn how to conduct yourself during a SARS audit.

Make 99 Tax Tips your constant companion to make the most of your tax affairs and stay compliant.

 
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Tip #3: Pay less tax with the reducing balance method

If you weren't the original user of the company car, and another person is granted the use of the company car by the same employer for at least 12 months prior to you using it, discount the determined value of that car at a rate of 15% per year on the reducing balance method.
 
This way you pay less tax on the benefit.
 
There you have it. if you'd like access to more tips like these, why not get your hands on 99 Tax Tips> they are the hottest tax tips you can't be without.

Click here to get yours now.
 
 

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