[Question] Travel Allowance - Fixed costs

[JKS]

Good morning everybody,

Just have one query regarding the fixed cost portion of the SARS travel allowance table.

Scenario:

An employee uses his private vehicle for business purposes.

The value of his vehicle is R180 000, which equates to a fixed travel allowance of R5544.17 per month as per the SARS travel allowance table.

But the director of the company only pays him R3000.00 per month as a fixed travel allowance. No pro rata basis is required as the employee has worked for the full 12 months.

Question:

Is the company allowed to pay the employee only R3000.00 pm or should the company,by law, abide to the SARS travel allowance rate of R5544.17?

[CLIVE-TRIANGLE]

What the company pays him is between him and the company. It can be anything.

What he can claim from SARS, against the allowance paid, is limited to the data above.

[JKS]

Noted. Thank you Clive.