Tax Avoidance?

[Taariq404]

Hi,

I am currently employed as a contractor. This month we received an email stating that we would received a travel allowance starting in August.

Today I received my payslip for August and noticed that an amount was deducted from my Salary and added as a 'Travel Allowance'. Even though I was asked for my monthly travel and vehicle costs, no additional allowance was given. So basically no additional allowance was given to me. I feel like this was fraud of some sort. To me it seems like manipulation of my payslip to pay a lesser tax amount.

I have enquired this matter but they have not responded and it seems as if they are avoiding me.

I have proof of all of the email correspondence between myself and the contracting agency. Should I report them and is this legal?

Regards,
Taariq

 

[stricken]

You score because your taxable amount is less. As a contractor you could also deduct it anyway. It is illegal in the sense that they made you believe that you are getting a travel llowance on top of your normal remittance - not simply shuffling your current gross to include it.

 

[OHNO]

In my view this is not correct. If they want to give an allowance, it must be on top of your current salary, and not just shuffelling around your current salary.

Take it also from me that travel allowances has no favor at Sars. My view is to do away with travel allowances, unless you truly travel a lot. The way this benefit is set up anyway is so tough that you don't easily score on your tax.

 

[IziWhatNow]

While this does benefit you from a tax point of view, you will be required to submit a travel log book every year with your tax return.