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Right of Use of Motor Vehicle - Coggle Diagram
Right of Use of Motor Vehicle
Determined Value
DV * 3.5% = no maintanance plan
Maintenance plan >=3 years and Distance >=60 000
For every 12 months held.
If yes, reduce car value by 15% (Reducing balance method)
ER is leasing the Vehicle? & It's an Operating Lease? Then DV = Rent p.m + Fuel costs
Did ER hold the car for >12 months before EE?
... Value = Actual Cost to ER (Rentals) + Fuel Costs
Can ER claim VAT input?🤔
Value Calculated is monthly
Therefore mulytiply by no of months car was used
CASH EQUIVALENT = Determined Value x (3.5 or 3.25%) x No of months
Apportion if used for part of a month
Calculate Taxable portion = Private Use
Temporary Use by EE? Do not apportion.
After 1 March 2015 Determined Value = MV (First time) Excl Finance Charges
Acquire before 1 March 2015 (Sale Agreement) = Cost incl VAT
No Value Motor Vehicles
2.
EE duties require use of Vehicle outside hours
And Private use not permitted
... Other than private use incidental or infrequent and
Travelling between his residence & place of work
1.
Private use is infrequent or incidental
Not normally kept on EEs residence
Generally used by EEs "Pool Vehicle"
Determined Value Reduction
Private KMs Record Kept
EE bears FULL cost of fuel. Reduction = Fuel rate per Travel allowance x Private KMs
EE bears FULL cost of License, Insurance & Maintanace 🤔 Deduction = Total cost x Private KMs/Total Kms
Logbook (Private kms) + Record of expenses kept
Accurate Record of Business KM kept
Done at Y.E when total kms for the period are available
Reduction = DV x Business km/Total km