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Suzelle says: 28 March 2024 at 8:15 My employer is satisfied that only 60% of my travel allowance will be for business purpose, do I only include the 60% in my monthly payslip for PAYE purposes or do I revert back to the 80/20 rule? |
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TaxTim says: 28 March 2024 at 10:57 The standard practice is to tax 80% of the travel allowance. This is based on the assumption that you travel 80% for personal reasons and 20% for business. The only exception is if you are satisfied that your business travel is significantly more than 20%, then your employer can choose to tax only 20% of your allowance (where 80% business use is assumed). It is up to you at year end to submit a detailed logbook to SARS with details of your actual mileage (both personal and business) and SARS will perform a detailed calculation on assessment which may result in a refund if it turns out that you paid too much tax in the year. If you fail to submit a valid logbook, or travelled less than expected for business, you will have a tax bill to settle when your tax return is assessed by SARS. Click here to access TaxTim's free digital travel logbook. |
