2 Summary of the Main Aspects of Travel Allowances
The main aspects of travel allowances are summarised below.
1. The employer:
a. Grants travel allowances
b. May only grant travel allowances to ‘qualifying’ employees
c. Must estimate a ‘realistic’ value for the travel allowance, usually at the start of the tax year
d. Must re-estimate the travel allowance when the job circumstances or the car change
e. Must include 80% or 20% of the estimated travel allowance as remuneration
f. Must re-estimate the 80% or 20% inclusion rate when the job or travel circumstances change
g. Must add any company petrol card expenses for fuel as an additional travel allowance amount
h. Must report 100% of the income value of the travel allowance on the tax certificate under code 3701.

2. Employees will only qualify for a travel allowance:
a. If they travel for business purposes
b. In a motor vehicle that is privately owned i.e., not company owned, and
c. If they have a valid driver’s licence.

3. The employee:
a. Should assist the employer to estimate a realistic value for the travel allowance
b. Should record his daily business kilometers in a logbook
c. Should claim business travel expenses on assessment by submitting his logbook details.