Petrol Reimbursement

Sorry will explain better.
I get a travel allowance (fixed)
Then they gave me a petrol card to use on fuel and maintenance.
The amount I use on t h e card each month gets add to my payslip as a fringe benefit.
I'm trying to find out what would happen if the company doesn't add it to my payslip. What kind of trouble can they get in from the tax man??
 
Zane123 said:
Sorry will explain better.
I get a travel allowance (fixed)
Then they gave me a petrol card to use on fuel and maintenance.
The amount I use on t h e card each month gets add to my payslip as a fringe benefit.
I'm trying to find out what would happen if the company doesn't add it to my payslip. What kind of trouble can they get in from the tax man??
Click to expand...
Hmm so you get taxed for company petrol . Don't sound right to me!
 
Colin62 said:
Of course it's right. Otherwise you'd be getting a financial benefit tax free.
Click to expand...
Ok
New OP do employer pay this fuel fringe benefit amount over as extra salary?

Eg.
Card petrol is r10k they pay over r10k extra salary

If not it not right to pay tax on money i does not receive
 
Last edited:
thehuman said:
Ok
New OP do employer pay this fuel fringe benefit amount over as extra salary?

Eg.
Card petrol is r10k they pay over r10k extra salary

If not it not right to pay tax on money i does not receive
Click to expand...


PAYE is not only based on monetary income or direct cash payments to employees.

Some info that is easily accessible with a simple Google search.

http://www.sars.gov.za/AllDocs/OpsDocs/Guides/PAYE-GEN-01-G10 - Guide for Employers iro Employees Tax for 2016 - External Guide.pdf
 
signates said:
PAYE is not only based on monetary income or direct cash payments to employees.

Some info that is easily accessible with a simple Google search.

http://www.sars.gov.za/AllDocs/OpsDocs/Guides/PAYE-GEN-01-G10 - Guide for Employers iro Employees Tax for 2016 - External Guide.pdf
Click to expand...
Will check link later :)
Could have misunderstood
If New Op done r2k worth of petrol this month on card and company pay r2k extra ontop of his normal pay , i wont mind paying tax on that , but im sure op can talk to a accountant to see if he can claim some of that tax on r2k back .

On a side note
Some companies give employees a petrol card for travels , give minimum vehicle allowance , bill employee for personal fuel use and give nothing extra for wear and tear on vehicle:(
 
signates said:
PAYE is not only based on monetary income or direct cash payments to employees.

Some info that is easily accessible with a simple Google search.

http://www.sars.gov.za/AllDocs/OpsDocs/Guides/PAYE-GEN-01-G10 - Guide for Employers iro Employees Tax for 2016 - External Guide.pdf
Click to expand...

I'm pretty sure that the way the company (and SARS) sees it they are paying over cash, to cover your fuel card account. With us, the fuel card total is added to your salary and then deducted again. You then pay the tax monthly instead of being hit with a large outstanding tax bill at the end of the year.
 
Just a thought.
If you use your personal credit card for petrol and the company pays your card at the end of the month. Will this be a fringe benefit??
 
Another thought
I get a travel allowance of x amount I get tax 80% fringe benefit I'm OK with that..
I get my private vehicle branded with the company's logo. Employer covers my fuel .is the fuel still a fringe benefit as I'm advertising the company on my business trip and work to home???
 
You really seem desperate to screw with the tax man.

I suggest you read up on what a Tax Avoidance Scheme is. SARS can easily declare all your schemes to reduce your tax liability as a Tax Avoidance Scheme. Both you and your employer will be penalised should it come to that.
 
That's on thing I don't want to do!!!
I've read posts on other sites and like to hear other people's options.
 
If you really need to know, as a tax advisor. Your free advice here is worth exactly what you paid for it.
 
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