Travel Deductions & Tax Returns: A Hassle-Free Guide

Let’s be honest—traveling for work is way less exciting than traveling for leisure. And when tax season rolls around, all that business travel can turn into a paperwork nightmare. But don’t worry—if you know what documents to keep and what SARS expects, claiming your travel deductions can be a breeze.

Here’s your ultimate guide to making sense of it all.

Can You Claim Travel Expenses?

Not everyone qualifies for a travel deduction, so first things first—check if any of these apply to you:

• You receive a travel allowance from your employer (source code 3701 or 3702)
• You drive a company car provided by your employer (fringe benefit, source code 3802 or 3816)
• You’re an independent contractor (source code 3616) or commission earner (source code 3606)
• You’re a sole proprietor or freelancer

If you’re in one of these categories—great! You’re eligible to claim.

The Documents You’ll Need

When it comes to SARS, documentation is everything. Here’s what to gather if you’re submitting a travel claim:

1. A SARS-Approved Travel Logbook

This is your key record. It must include:

• Dates of each trip (both business and personal)
• Trip descriptions (e.g. “Meeting client J. Smith at Eskom HQ”)
• Start and end odometer readings (for the tax year)
• To/from locations for every trip (Use the SARS e-Logbook format and add a column for private travel—this is now required.)

Remember: Your daily commute (home to office and back) is always considered private travel.

2. Vehicle Purchase Agreement

Only include this if the car you use belongs to you.

3. Letter From Your Employer

If you’re using a company car, you’ll need a letter stating:

• The car is used for business
• Vehicle details
• Applicable fringe benefit codes

4. Logbook Summary

This should clearly show total business and private kilometers traveled.

5. Invoices for Actual Vehicle Expenses

Only needed if you’re using the “actual” expense method (more on that below).

6. Are you using someone else's car?

Include:

• A signed letter or affidavit from the owner giving you permission
• The car’s registration, NaTIS, or finance agreement

Deemed vs. Actual Expense Methods

If you receive a travel allowance, you can choose between two calculation methods:

Deemed Method
Use SARS-approved rates (no need to submit receipts). Ideal if you prefer simplicity.

Actual Method
You’ll need to submit all actual invoices for expenses like petrol, maintenance, and insurance. Required if you don’t receive a coded travel allowance.

What Happens After You Submit?

Once you’ve uploaded all your supporting documents, SARS will audit your claim. They’ll let you know the outcome when their review is complete.

Frequently Asked Travel Tax Questions

1. I drive multiple company cars—what do I enter on my return?
   List each car you used. SARS’s system will prompt you to enter the details individually.
   
2. Is there a max percentage I can allocate for travel allowance?
   There’s no official max, but avoid structuring your salary entirely as a travel allowance—SARS might disallow it. Ideally, keep it to 20–30% of your total package.
   
3. I use my car 70% for business but don’t receive a travel allowance. Can I claim?
   If your commission income is more than 50% of your total earnings, you can. Use source code 4015 under “Other deductions” and submit your logbook and invoices.
   
4. I switched cars mid-year (and even leased one). What now?
   You can claim for all three vehicles—just log the business and private kilometers for each in the same logbook. On your return, SARS will ask for the details per vehicle, including any rental cars.

Claiming travel deductions doesn’t have to be painful. Stay organized, keep good records, and understand what SARS is looking for. Whether you’re behind the wheel of your own car or a company ride, these tips will help you navigate tax season like a pro.