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Graham says: 19 February 2016 at 9:22 A client of mine is the sole shareholder and employee of his company. He does a lot of car travel for his work. What is the most beneficial method in terms of tax: to buy a car in his own name, or to buy one in the company name and use it for business and personal (will be small personal use)? |
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TaxTim says: 19 February 2016 at 17:58 How much mileage will he be doing each year for work purposes? |
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Graham says: 22 February 2016 at 9:09 His work takes him to a lot of rural areas. if I were to guess - over 15,000 kms comfortably and well over 80% will be business use. |
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TaxTim says: 23 February 2016 at 12:48 Then it would make sense for the company to buy it and he would receive the use of the car, but be taxed at 20% of that value. The company gets to write off the car for depreciation purposes. |
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Graham says: 23 February 2016 at 13:42 Under this arrangement can he claim a travel allowance? |
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TaxTim says: 23 February 2016 at 23:09 He would need to keep a logbook and still submit this to SARS so some of his car allowance would be refunded when he submits his tax return. |
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