Difference between vehicle running expense allowance or vehicle purchase allowance?



Ayihe says:
26 April 2016 at 8:41

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

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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.



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