How travel expenses can increase your tax refund

Driving your personal car for client visits, site inspections, or off-site meetings costs you money. Fortunately, the tax law provides a mechanism to reimburse you for that wear and tear through a deduction.

Section 8(1)(b) of the Income Tax Act allows you to deduct business travel expenses if you receive a travel allowance from your employer or earn commission. However, it is crucial to understand what SARS actually defines as "business travel":
* Driving from your house to your regular office every morning is classified as private commuting and has zero tax benefit.
* Driving from your office to a client's site for a meeting is fully deductible.

To successfully claim this money back, you must maintain a compliant SARS logbook. This record must capture the opening and closing odometer readings for the entire tax year. Furthermore, for every single business trip, you must record the date, destination, business purpose, and kilometres travelled. A rough guess at the end of the year will result in an immediate rejection of your claim.

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Disclaimer:This article is for informational purposes only and does not constitute financial or tax advice, and is not exhaustive. Tax laws are complex and subject to change. We strongly recommend consulting with our registered tax practitioner to address your specific circumstances.