Company vehicle question

[medicnick83]

For those who have company vehicles;

How much are you allowed to do 'personal' driving per month?

In my situation; I took a salary knock of R2000± so that I get the vehicle, use it for work and personal usage - I do - if I think about it honestly, maybe 50km's a week (this assuming I goto Metro EMS and back once, maybe twice a weekend which is 20km's (there and back from my flat) )

If I do any personal driving, say, I visit The_Lib and it is about 50km's then I put in petrol (as well as the Metro trips) to cover the trip.

I'm just wondering what else other people / companies do.

 

[Skywalker42]

Not sure if this is of any help...

From SARS website. Travel Allowances

Link

80% of the travel allowance paid to an employee is subject to the deduction of employees' tax. Where the employer is satisfied that at least 80% of the use of the motor vehicle for a year of assessment will be for business purposes, then only 20% of the allowance is subject to the deduction of employees tax with effect from the 1 March 2011..

 

[Mbuzi]

Since you are having the right of use of the motor vehicle that is registered in the name of your employer, a fringe benefit in the form of Use Of Motor Vehicle (code 3802 in the return) arose and you will be taxed on it. Cost price of vehicle (excl. VAT) X 2.5% X by number of months used. It's always wise to keep a log book and if you travel less than 10 000KMS in a tax year then you can claim that travelling. Writing under correction.

 

[medicnick83]

Not sure if this is of any help...

From SARS website. Travel Allowances

Link

80% of the travel allowance paid to an employee is subject to the deduction of employees' tax. Where the employer is satisfied that at least 80% of the use of the motor vehicle for a year of assessment will be for business purposes, then only 20% of the allowance is subject to the deduction of employees tax with effect from the 1 March 2011..

Sadly, this just went "right over my head"

Can you explain in "stupid" please?