An employee gets 100% reimbursed for his cellphone bill let's say R570 (incl VAT).
Say 20% of his cellphone bill is for personal use ie. R114 and 80% for business ie. R456. Under what should this appear on his IRP5? Would it be 3713 Other allowances?
Is the company allowed to claim the R70 input? If so, this means that the employee will be subject to tax on R100 and not R114 (as the R14 VAT was claimed back as part of the R70)? I don't think the company will be able to claim back the VAT on this, as the invoice will be in the name of the employee and not the employer...