Question
Use of a company car: Megan received a travel allowance of R6 800 per month from her employer for the use of a vehicle for
Use of a company car: Megan received a travel allowance of R6 800 per month from her employer for the use of a vehicle for the 12 months of the 2023 year of assessment. The vehicle was purchased second-hand for R320 000 (including VAT). Megan used the vehicle for a total of 235 days during the 2023 year of assessment. She travelled a total of 24 700 km, and her logbook showed that 13 270 km were for private purposes. She did not keep accurate records of the costs she incurred. With regards to the Use of a company car, calculate the taxable amount of Megans travel allowance for the 2023 year of assessment. Fixed cost table: 1 March 2022 - 28 February 2023 Value of the vehicle (including VAT) (R) Fixed cost (R p.a.) Fuel cost (c/km) Maintenance cost (c/km) 1 - 95 000 29 836 131.7 40.9 95 001 - 190 000 52 889 147.0 51.1 190 001 - 285 000 76 033 159.7 56.3 285 001 - 380 000 96 197 171.8 61.5 380 001 - 475 000 116 438 183.8 72.3 475 001 - 570 000 137 735 210.8 84.9 570 001 - 665 000 159 031 218.0 105.5 exceeding 665 000 159 031 218.0 105.5 Reimbursive travel allowance 418 cents
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started