Results 1 to 5 of 5

Thread: Vehicle tax Implications?

  1. #1
    Suspended
    Join Date
    Nov 2010
    Location
    Johannesburg
    Posts
    893
    Thanks
    8
    Thanked 61 Times in 54 Posts

    Vehicle tax Implications?

    A vehicle that is in a persons name but is paid for by the same persons company - can it be expensed? ie the company has been paying the monthly installments - auditors want to put it to a loan account - is there any other way to rather put it thro the company rather?

    Any help is appreciated please

  2. #2
    Silver Member
    Join Date
    May 2006
    Location
    Houston
    Posts
    361
    Thanks
    51
    Thanked 41 Times in 32 Posts
    This is not professional advice please note:

    But as far as I know, the payment made by the business for the vehicle in the persons private name would have to be a taxable earnings, but could be reduced substantially if the individual has proof of the mileage for the business which can then be claimed back as a deduction from the earnings on a mileage basis.

    You need an expert to work it out for you! LOL

  3. #3
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    20,977
    Thanks
    3,055
    Thanked 2,462 Times in 2,067 Posts
    Blog Entries
    12
    Quote Originally Posted by Kevinb View Post
    is there any other way to rather put it thro the company rather?
    Have the company registered as the owner. (The exception is if the business is a sole proprietorship)

    auditors want to put it to a loan account
    The alternative is having it added to the owner's remuneration as a vehicle allowance.

    The big question is - have you kept a log book of private and business use?
    The trouble with opportunity is it normally comes dressed up as work.

  4. #4
    Suspended
    Join Date
    Nov 2010
    Location
    Johannesburg
    Posts
    893
    Thanks
    8
    Thanked 61 Times in 54 Posts
    Thanks Yvonne - thanks Dave .........no my wife has not kept a log book of private and business use ....... is this a problem ?

  5. #5
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    20,977
    Thanks
    3,055
    Thanked 2,462 Times in 2,067 Posts
    Blog Entries
    12
    Quote Originally Posted by Kevinb View Post
    no my wife has not kept a log book of private and business use
    Could you/she go over her diary and create one?

    Maintaining a log book is pretty significant in terms of realising the tax efficiency potential of a travel allowance.
    The trouble with opportunity is it normally comes dressed up as work.

  6. Thanks given for this post:

    geraldenek (11-May-12)

Similar Threads

  1. Close Corp' TAX IMPLICATIONS??
    By REE in forum Tax Forum
    Replies: 6
    Last Post: 11-Dec-12, 01:29 PM
  2. Replies: 8
    Last Post: 25-May-11, 02:17 PM
  3. [Question] Tax implications of changes in membership of a CC
    By Avdl in forum Tax Forum
    Replies: 1
    Last Post: 17-Oct-10, 06:52 AM
  4. tax implications of selling share in CC
    By frankh in forum Tax Forum
    Replies: 2
    Last Post: 12-Jun-09, 09:19 PM
  5. [Question] Substance over form and VAT implications
    By Ladel in forum Tax Forum
    Replies: 3
    Last Post: 14-Mar-09, 05:19 PM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •