What’s best: a travel allowance or mileage reimbursed? Q: I have the choice to structure my own cost-to-company package and selecting the level of my travel allowance from 0% of my salary upwards. I drive a low-value older vehicle. Would it make more sense to be paid for my mileage than to claim against a travel allowance? Confused, Plumstead, Cape Town. A: Rob Cooper, tax expert at Sage, answers. Your employer may only legally grant you a travel allowance if you travel for business purposes in a privately-owned motor vehicle and the employer must estimate the value of the allowance, not you. The value of the travel allowance must closely approximate the actual business travel expense and should not be a chosen percentage of your salary. Employers should use the SA Revenue Service (Sars) cost scale table to calculate an estimated cost rate per kilometre that is acceptable to Sars. This cost rate per kilometre is multiplied by the estimated business travel per month to get the monthl...

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