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Site allowance claim

Posted 13 January 2016 under Tax Questions



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Raks says:
11 January 2016 at 16:14

i work in construction and stay out for long periods. My company pays me a site allowance(shown on payslip)
i use this for rent food and travel. Can I claim back?

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TaxTimTaxTim says:
12 January 2016 at 10:00

What source code do they use for this allowance on your payslip or IRP5?


Raks says:
12 January 2016 at 10:20

there is no code on payslip
this allowance started in july and I dont have IRP5 yet


TaxTimTaxTim says:
12 January 2016 at 21:00

How is the allowance calculated - is it a daily rate?


Raks says:
13 January 2016 at 9:00

it is a fixed amount paid with my salary.
and I am taxed on it


TaxTimTaxTim says:
13 January 2016 at 12:00

When you receive your IRP5, make sure the allowance is reflected under source code 3704 or 3713.

Where recipients are obliged to spend at least one night away from their
usual place of residence on business and the accommodation to which
that allowance or advance relates is in the Republic and the allowance or
advance is granted to pay for-
%u20AC meals and incidental costs, an amount of R353 per day is deemed to
have been expended;
%u20AC incidental costs only, an amount of R109 for each day which falls within
the period is deemed to have been expended

Therefore, when you complete your 2015/2016 tax return, you can claim the applicable rate times by the number of nights you spent away. You can insert the amount under the "other deductions section" of the tax return.

However, any allowance given in excess of these SARS approved deemed rates would be taxable in the your hands.


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