I get a traveling allowance of R7500pm and I use the car more than 80% for business purposes, what c

More than 80% of my travelling is for business and I maintain a logbook, however my employer applies 80% PAYE on my salary every month, is this correct?

This entry was posted in Tax Q&A and tagged , , , , . Bookmark the permalink.

TaxTim TaxTim says:
3 April 2013 at 10:33

Your employer, in his discretion, can decide to have 80% of the amount of the travel allowance not attract PAYE, if he is satisfied that more than 80% of use is for business purposes. However many employers are reluctant to do so because they SARS require a lot of proof in this regard and if it is proven that this wasn't the case then SARS can penalise both you and your employer. Speak to your employer about this and find out his reasoning.

Do your Tax Return in 20 minutes or less!

TaxTim will help you:

 Do Your Tax Return Easily
 Avoid penalties
 Maximise your refund

Tim uses your answers to complete your income tax return instantly and professionally, with everything filled in in the right place.

Let Tim submit your tax return direct to SARS in just a few clicks!

Get started

Blog Categories

Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →

Get SARS Tax Deadlines in your Inbox
We'll tell you when you need to file, along with tax tips and updates.