Car Allowance

[Thamza]

Hi guys,

I receive a car allowance every month and next year I am paying off my car. Can I use the allowance as I please or will I be compelled to get another car? I would rather put some of the cash into bond repayment.

Please share your knowledge or understanding of this matter. Thanks.

 

[Hendrix]

No, you don't have to buy a new car.
When you do your tax return, and claim for your car, SARS just asks the purchase value of the car, they don't care if you paying for it or not.

 

[master_yoda]

Car allowance is about vehicle price and business mileage. No one can force you to buy another car or use the entire allocation of the allowance on the car, the key thing is that you use the car allowance for the intended purpose, business travel.

 

[Thamza]

Thanks very much for your replies guys, I really appreciate it.

 

[crackersa]

just keep a kilometer usage book for SARS

 

[Thamza]

just keep a kilometer usage book for SARS

Thanks for the tip.