[Question] How to claim against Use of Motor Vehicle Allowance - Car Dealer

[Annilda]

A client of mine works as a car salesman at a car dealer. His IRP5 reflects a Use of Motor Vehicle Allowance, but he uses demo vehicles on the business premises for travel. How would I claim his business travel if I am not able to supply motor vehicle details or odometer readings to SARS?

[Bertievn]

The use of motor vehicle allowance for sales persons is a fringe benefit tax.
Not allowed to claim business travel as vehicle belongs to dealership.
Can claim expenses against commission earned if he paid for petrol but they usually get petrol for demo and own use

[Reniergouws7@gmail.com]

How do you treat the expense for the demostration purposes is only occasionally fuel paid by the employee?

[Bertievn]

Commission paid on IRP5 must have code 3606 you can claim travel expenses on code 4015 in other deductions.
SARS can ask you for a log book so he needs to keep record of travel for business and demo even if you had more than one car a year and proof that he paid for petrol.
Salespersons never pay for demo petrol as they get petrol from dealership therefore SARS may query