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Is it possible to claim business kilometres and structure your salary to have a car allowance?

Posted 16 July 2014 under Tax Questions



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I would like to sacrifice part of my salary for a car allowance, and claim monthly business kilometres on my travelling. What are the tax implications?

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TaxTimTaxTim says:
16 July 2014 at 12:19

Your allowance will be taxed at 80% only and not at 100% and you will be able to claim back the business element of the allowance that you were taxed on. You will need to justify that you spend enough time travelling or do enough mileage to keep this allowance. You must keep a logbook at all times.


Bongo says:
17 July 2014 at 12:52

Will it be okay to claim the kilometres I have travelled monthly from the company while I am getting travel allowance?


TaxTimTaxTim says:
17 July 2014 at 14:54

Do you travel for work purposes?


Bongo says:
17 July 2014 at 15:02

Yes, I do travel for work purpose


TaxTimTaxTim says:
17 July 2014 at 15:03

Then you would be able to claim the business km's and reduce your taxes, however this is only done when you submit your return, not when you receive your monthly salary.


Bongo says:
17 July 2014 at 15:07

Meaning , I should not claim the kilometers travelled during the month?


TaxTimTaxTim says:
17 July 2014 at 15:08

No, you cannot claim during the month. You will be taxed on the travel allowance monthly and then at year end you make the claim for the km, provided you keep a logbook.


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