16 Last thoughts on Travel Allowances
Take a step back and think about the following.
1. To get a refund of any travel allowance PAYE owing to him, the employee must –
a. Keep a logbook for the whole year
b. Record his kilometre reading at the start and end of each tax year
c. Complete special sections in his ITR12 to claim a tax deduction
d. Wait 6 months into the next tax year to be refunded.

2. The employer must :
a. Estimate the travel allowance value at the start of every tax year for all employees that travel.
b. Re-estimate the travel allowance when the vehicle or the job circumstances change
c. Check the decision on the 80% or 20% inclusion rate of the travel allowance ‘regularly’
d. Change the remuneration inclusion rate (if necessary) when the nature of the job changes
e. If the travel allowance is included in a package, deal with the problems that result
f. Deal with employee queries on their travel allowances
g. Live with the risk of doing something wrong and the possibility of penalties …
The two ways to return to a sane position is for:
1. National Treasury and SARS to phase out the travel allowance over a few years (as requested), OR
2. Employers must vote with their travel compensation policies by changing from travel allowances to travel reimbursements.