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Vehicle expenses for business

Posted 9 September 2015 under Tax Q&A


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Gman says:
5 September 2015 at 11:19

When I was a sole proprietor, taxed under my own name, if I drove somewhere on business-related matters, I used my own vehicle. I then claimed those business kilometres as a proportion of the total expenses and depreciation on my vehicle over the course of the tax year. Now I have a (registered) private company - can I still follow the same process, and claim the travel expenses as a tax deduction for my BUSINESS? If not, what are the options for me?

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TaxTim TaxTim says:
7 September 2015 at 9:29

How many km do you do a year for business?

Gman says:
7 September 2015 at 9:52

About 4000-5000km

TaxTim TaxTim says:
7 September 2015 at 16:39

It would be best to then have the company pay you a R3.18 per km claim for your business travel as a reimbursive allowance. This will be a deduction for the company and you will not be taxed on the difference.

Gman says:
8 September 2015 at 15:22

Thanks for the feedback. Can I ask, on what basis did you get the R3.18/km figure - is that standard for all vehicles? [btw, my vehicle is a Suzuki SX4 AWD]. Also, what do you mean when you say "you will not be taxed on the difference"? Do you mean I won't get taxed on that income under my personal name? Thank you for your help!

TaxTim TaxTim says:
9 September 2015 at 12:34

R3.18 is the SARS rate per km which is not taxable in your hands if paid as a reimbursed allowance.


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