How to Claim Travel Allowance in South Africa
If you receive a travel allowance from your employer or use your own vehicle for business purposes, you can claim a significant tax deduction. SARS provides two methods: the actual cost method (with a logbook) and the deemed cost method.
Actual Cost Method (Logbook Required)
Keep a detailed logbook recording every business trip: date, destination, purpose, and kilometres driven. At year-end, calculate your total business kilometres vs personal kilometres. Claim the business percentage of all vehicle costs: fuel, maintenance, insurance, licence fees, finance charges, and depreciation (limited to R 245,056 cost price for 2025).
Deemed Cost Method (No Logbook)
If you don't keep a logbook, SARS applies a prescribed rate per kilometre based on the value of your vehicle. This is simpler but usually results in a smaller deduction. SARS publishes these rates annually in the Government Gazette.
Who Should Keep a Logbook?
If you drive more than 10,000 business kilometres per year, the actual cost method almost always yields a larger deduction. Sales reps, estate agents, and anyone with a travel allowance should keep a logbook. Digital logbook apps are accepted by SARS.
Tips to Maximize Your Claim
Start your logbook on 1 March (the tax year start). Record trips immediately — don't reconstruct from memory. Include trips between multiple work sites, client visits, and trips to the post office or bank for business purposes. Keep fuel slips and maintenance receipts.
Disclaimer: This guide is based on the South African Income Tax Act and published SARS Interpretation Notes as at the 2024/2025 tax year. It is provided for informational purposes only and does not constitute professional tax advice. Tax legislation changes periodically — consult a registered tax practitioner for advice on your specific situation.
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