HomeHome SearchSearch MenuMenu Our productsOur products

Use these two tips to ensure your employee's travel allowance doesn't turn into a tax nightmare

by , 08 July 2014
So you decided to give your employee a travel allowance. There are lots of advantages of this, especially tax ones.

Thousands of businesses use travel allowances to get a bit of cash back from SARS. But they're easier to get wrong than to get right.

Here's what you need to know to avoid your employee's travel allowance turning into a tax nightmare...

*********** Hot off the press  ************
Get expert answers to the 69 most frequently asked company car and travel allowance questions 
If you've ever turned to Google to get answers to your company car or travel allowance questions, you know there are thousands of pages to search through...
And how do you know if the answers you get are correct?!
That's why we've teamed up with two leading tax experts to give you the expert company car and travel allowance answers you need.

Don't let your employee's travel allowance keep you up at night

A travel allowance is simply an amount of money you give your employee - in addition to his salary - to pay for his travel expenses. 
There are tax implications for you and, whenever there are tax implications, it's easy to make a mistake.
To help you avoid making these mistakes use these two tips:
Tip #1: The first rule for travel allowances is to keep a clear and accurate logbook.
Your employee must record all the details of his travels. His logbook must include:
- The date;
- His name;
- The distance travelled; and
- The amount of petrol he paid for in Rands.

Tip #2: Never simply get rid of a travel allowance

The deduction benefits you can get from a travel allowance can easily turn into a penalty if you ditch your employee's travel allowance because he doesn't need it any more. SARS will take this to mean he didn't need it to start with and you made claims on a false travel allowance.
With these two tips in mind you'll be able to manage your employee's travel allowance easily and without provoking SARS. 
*********** Product endorsement  ************
Avoid 200% tax penalty

Related articles

Related articles

Watch And Learn

Related Products


Recommended for You 

  Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance

Here are all the most interesting, thought-provoking and common tax questions
asked by our subscribers over the last tax year – everything from A to Z!

To download Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance click here now >>>
  Employees always sick? How to stop it today

Make sure you develop a leave policy to regulate sick leave in your company.

BONUS! You'll find an example of the leave policy and procedure in this report.

To download Employees always sick? How to stop it today click here now >>>
  Absenteeism: Little known ways to reduce absenteeism

This FREE e-report will tell you how you can reduce absenteeism in your workplace while avoiding the CCMA and without infringing your employees' labour rights.

To download Absenteeism: Little known ways to reduce absenteeism click here now >>>
  7 Health & safety strategies to save you thousands

Don't let a health and safety incident cost you one more cent. Implement these seven
strategies in your company today.

To download 7 Health & safety strategies to save you thousands click here now >>>