Blog Q&A Calculators Students Logbook Contact

Difference between vehicle running expense allowance or vehicle purchase allowance?

Posted 26 April 2016 under Tax Q&A
Ayihe says:
26 April 2016 at 8:41

What is the difference between vehicle running expense allowance or vehicle purchase allowance?

This entry was posted in Tax Q&A and tagged . Bookmark the permalink.

TaxTim TaxTim says:
26 April 2016 at 9:24

Technically there is no difference - however some may say that only the vehicle purchase allowance may be used to claim the cost of the car, i.e. the annual wear and tear. However in practice it is claimed on both allowances. The allowances are taxable and normally used by employee to claim the travel expenses from using their personal vehicles for business travel.


Get Tax Deadline Reminders, News and Tips
 

We'll tell you when you need to file, along with tax tips and updates.

Let TaxTim
help you
submit your
Tax returns!



TaxTim will help you:
  • Do Your Tax Return Easily
  • Avoid penalties
  • Save money
Tim uses your answers to complete your income tax return instantly and professionally, with everything filled in in the right place.

Get started