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Medical Aid & Car & Travel Allowance Questions

Posted 9 April 2014

Can an employer pay an employee for medical aid if its not medical aid through the company but rather on their own capacity? For example I have my own medical aid on my name. Can my employer pay me a set amount of R2000 every month for medical aid? What is the tax benefit of that, if any?

What is the difference between a car/Motor Vehicle allowance and travel allowance or are they the same thing? I don't travel for the company, but could I still get a car/Motor Vehicle allowance?

TaxTim Marc TaxTim Marc said:
11 April 2014 at 16:18

Your employer can pay for your medical this way, but you will be taxed on the amount given to you, as if it were income like a salary, the same with an allowance for a motor vehicle. You are able to claim tax credits for contributions to medical aids and business travel against the car allowance.

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