Getting bucks back for business travel
Bedfordview tax consultant Marissa Burness from The Tax Shop Accountants provides essential travel claim advice.
Tax payers who receive a travel allowance from their employer can claim a Sars refund for the use of their private motor vehicle when they have travelled for business purposes.
There are two things which are essential in submitting a claim for business related travel: a travel logbook and odometer readings.
Bedfordview tax consultant Marissa Burness from The Tax Shop Accountants said the first thing qualifying tax payers need to do in order to submit a valid claim for travel is to record the odometer reading of the vehicle used.
This must be done on March 1 of every year.
“This is the first day of the tax year. Next, those who wish to submit for a refund need to ensure that they keep a logbook throughout the year. SARS has downloadable logbook templates available. It is important to note that without a logbook, tax payers would not be able to claim for business travel.
“Without a logbook the tax payer will not have a valid claim,” said Burness.
There is no need to record details of private travel.
On the last day of the tax year, either February 28 or 29, again record the motor vehicle’s closing odometer reading.
“To calculate the number of kilometres travelled during the year, simply deduct the opening kilometres from the closing kilometres. Next, add together kilometres travelled for business and subtract this from the total travelled kilometres and get the kilometres travelled privately.”
Those travelling for business need to make sure that the following is recorded in their logbooks:
• Date of travel
• Total kilometres travelled
• Details of travel from the start of the trip to the end, including the reason for the trip.
“Your travel between home and your place of work cannot be claimed for business purposes, as this is regarded as private travel. A separate logbook must be kept for each motor vehicle where more than one motor vehicle has been used for business travel during the year of assessment,” said Burness.
She added that once submitted, logbooks need to be kept safe for at least five years.
“Some employers provide their employees with the use of company-owned motor vehicles. These are known as employer-provided vehicles. Private use of an employer-provided company-owned vehicle is a taxable fringe benefit,” said Burness.
She added that the taxable fringe benefit for employer-provided vehicles can be reduced by licence fees, insurance, fuel and maintenance expenses that are directly incurred by the taxpayer.
“If you make use of an employer-provided vehicle and your employer partially reimburses you for the amounts paid for licence, insurance, maintenance and/or private cost of fuel, you may not deduct any private expenses for the items so reimbursed,” said Burness.
