[Question] Accommodation and Vehicles

[JPWilliams007]

Hi,

Kindly see my question below, hope someone can assist me with this.

I work for a company that is owned by brothers, the head office is in Cape Town and have a branch in Johannesburg. When one brother travels they stay at one another's houses to save on accommodation fees but they do pay a R7000.00 monthly towards each others rent. How would one record this in the books to not show as a fringe benefit, I need a legal and smart way.

Secondly each brother has a 4 X 4 vehicle that is mainly used for deliveries and so forth, may we invoice them a rental invoice for using the cars on a personal use, vehicles are in the companies name and the company uses it mostly. They would not like using a log book. Again please, a smart way of doing this without showing as a fringe benefit.

Thanks and regards

[Dave A]

I work for a company that is owned by brothers, the head office is in Cape Town and have a branch in Johannesburg. When one brother travels they stay at one another's houses to save on accommodation fees but they do pay a R7000.00 monthly towards each others rent. How would one record this in the books to not show as a fringe benefit, I need a legal and smart way.

If you read this recent thread, you'll see the real problem here is there's no getting away from the fact that an expense claimed in the one (taxable) entity is income in the other.

Secondly each brother has a 4 X 4 vehicle that is mainly used for deliveries and so forth, may we invoice them a rental invoice for using the cars on a personal use, vehicles are in the companies name and the company uses it mostly. They would not like using a log book. Again please, a smart way of doing this without showing as a fringe benefit.

If they really want to be as tax efficient as possible, may I suggest that they own a really cheap second hand car in their own name for personal use purposes. It seems unlikely in your situation that anyone is going to get excited if they happen to use the company's 4x4's only very rarely for private use, but I suppose the company could raise an invoice...