Important Notice regarding Travel Allowances

TRAVEL ALLOWANCES

Where a travel allowance is being paid; PAYE has been deducted by the employer on 80% of the allowance.  A claim is necessary on the personal tax return against the untaxed 20%.  Where no detailed log has been maintained; such claim has been made on the "deemed" kilometres basis.  It is Vital that the total Ks on the odometer is noted on tha last day of the tax year - 28 February.  The first 18 000 Ks are deemed private use leaving the excess over that figure available for your claim.

Budget changes affect 2011 tax year and the cliams on the "deemed kilometers" basis will no longer be possible. Those employees that are not prepared to maintain a log ; or; where there is little or no genuine business Ks should discuss the allowance with HR with a view to stopping the allowance.

NB Travel between home and office is deemed private use - No argument!

Remember - No detailed log - no claim against the untaxed portion of the travel allowance.