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Individuals- Allowances - Coggle Diagram
Individuals- Allowances
Travel Allowance
Types
-Fixed monthly travel allowance s8(1)(b)(ii)
-Reimbursement of actual business kms travelled s8(1)(b)(iii)
Principles
-Portion expended for business travel; not included
-Portion expended for private travel; included
Therefore, taxable TA=TA less business travel
Business Travel=Business Km x Rate/Km
Rate
1) If vehicle is owned by ER deemed rates can't be used
2) If vehicle is owned by ER actual costs must be used
Actual Costs (Vehicle owned by ER)
-Must have supporting documents
-W&T, Finance, Lease pmts, Fuel, Oil, License, Insurance
-Actual Rate=Actual Costs/ Total Km
-DEDUCTION= Actual Rate x Business Km
Deemed Rates
-Value of vehicle= incl. VAT, excl. Fin charges
-Fixed Cost must be divided by total km & apportion for days
-Fuel Cost- Recipient must bear all fuel costs
-Maintenance cost- Recipient bears all costs & only top-up or add-on maintenance plan
Simplified Method
-Business travel can't exceed 12 000km during YoA
-No further allowance
-Must elect to use it
-Rate=361c/km of business travel
-
Subsistence Allowance
Principles
-If EE is required by reason of employment to spend at least one night away from place of residence
-Include full allowance
-Then deduct amount spent by EE on Accommodation & Meals and incidentals
Actual Method
-Amount incurred (proven to commissioner)
-For accommodation meals and incidentals
-Excl. amounts that are not allowance
-Ltd. to allowance
Deemed Method
-Amount determined by commissioner
-For each day/part of day EE is away
-Excl. actual amounts claimed as deduction
-Ltd. to allowance
-Incidental only=R134
-Meals& Incidentals= R435