Petrol Reimbursement

J

jpbar

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Hi

If anyone can help me with this I'll forever be thank full. I work at a company that pays me R1.19 p/km that I travel for business purposes with my own personal car.

Is there a standard that should be paid regarding an employee using his own vehicle? I've read alot on the AA standards which says that I should be getting R3.93c p/km.

The company also deducts tax from this "travel reimbursement" that they give us. I travel anything between 700 and 800km a month for the company. Yet I read something on the SARS site that says that if you travel under 8000km a year for business purposes, they can't tax you on this claim

If someone can just please shed light on this, I'll really appreciate it.

Thanks in advance.
 
First post ... so welcome to MyBB ... here's where most introductions happen --> http://mybroadband.co.za/vb/forumdisplay.php/144-First-posts-intros-forum-questions

Not sure about the tax aspect and perhaps not all information regarding the reimbursement arrangement is stated here, but can say that it appears you are being shafted on the reimbursement, as that probably doesn't even cover your insurance and maintenance and wear and tear.
 
Ours works like this:

Vehicles with engine capacity up to and including 1400cc:........R2,42 per km
Between 1401 and 1800cc:...................................................R2,75 per km
1801cc and greater:..........................................................R2,92 per km
 
http://www.aa.co.za/content/62/vehicle-operating-costs/

Though not sure if companies reimburse the running cost or vehicle cost or what.

In general I would suggest that you get hold of a tax consultant. I know that SARS have been changing travel expenses a lot the last few years, but a good tax consultant should be able to help you structure your package differently. Make friends with whomever is doing the accounts in your company and ask them if they can structure your salary differently.
 
Have you spoken with your HR department for clarity on the matter? I am afraid that the majority of answers you will get here will be to the effect of "strange, I get R2.50 a km which i get back from SARS after filing my tax return" etc. There might be a logical reason for the amount stated.

In any case, I am doubtful whether you will be able to demand an AA rate per KM from the company...
 
I am in the same boat as OP as I get R1,51 per km I drive currently. I am not exactly sure how it all works because the AA rate for my vehicle is R2,43 so there's definitely something missing there.
 
You need a logbook else your out of luck. You travel to much for the 8000km special rule, so it will be treated as a straight travel allowance.

The AA has nothing to do with it. The tables you need are in the income tax act interpretations or regulations. Basically it gets included in you taxable income but you get a deductions too...to work that out you need a logbook & the tables & receipts (if you want to calc actual cost per km).

A word of warning...they check those logbooks pretty carefully so no thumbsucking. ;)
 
jpbar said:
Hi

If anyone can help me with this I'll forever be thank full. I work at a company that pays me R1.19 p/km that I travel for business purposes with my own personal car.

Is there a standard that should be paid regarding an employee using his own vehicle? I've read alot on the AA standards which says that I should be getting R3.93c p/km.

The company also deducts tax from this "travel reimbursement" that they give us. I travel anything between 700 and 800km a month for the company. Yet I read something on the SARS site that says that if you travel under 8000km a year for business purposes, they can't tax you on this claim

If someone can just please shed light on this, I'll really appreciate it.

Thanks in advance.
Click to expand...

All AA and other rates are prescribed and only a guideline. Your employer can pay what they want basically. You are right about the tax though.
 
Ono'rach said:
Where I work, all travelling, irrespective of your car's engine capacity, is reimbursed at R2.92 per km.
Click to expand...
Its because of tax. If you go over that the rules of the game change. The amount you've got there is old though....thats 2010 I think.
 
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