Welcome changes have been made to the travel reimbursement taxation rules from March. The new rules are simpler and more logical than before, resulting in a travel compensation option that has significant advantages over travel allowances and company cars. Generally, as an employee, if you incur your employer's business expense, your employer will reimburse you. And usually a reimbursement is not regarded as remuneration (an amount paid for services rendered) and has no tax impact on you as an employee. Tax legislation, however, treats a portion of a travel reimbursement differently as it is regarded as remuneration. Travel reimbursement is what you receive for kilometres travelled for business purposes. The amount must be calculated by multiplying the kilometres you, as an employee, have travelled, by a rate per kilometre set by your employer. The portion of your travel reimbursement that is regarded as remuneration is used to calculate the pay-as-you-earn tax withheld from you as ...
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