A taxpayer is only allowed to claim car expenses if you receive a vehicle travel allowance or a vehicle purchase allowance. This allowance is normally awarded to employees who use their personal cars for business travel.
How do I claim my vehicle expenses in my tax return?
You will need to keep a logbook (A logbook is a book or number of sheets, in which the detail of a travel or trip is documented) for the tax year (1 March 2015 up to 29 February 2016), that indicates the total amount of kilometers travelled with your vehicle. This should be split between kilometers travelled for business purposes and kilometers travelled for private/personal purposes.
It is important to note that travelling from your home to your office or your workplace is not business travel.
When completing your tax return online via TaxTim, please make sure that you have the following information ready:
Normally the purchase agreement from when you bought the car is sufficient.
The following expenses that directly relate to the car used for business travel, may be claimed against the travel/car allowance:
It is important to know that you will have to deduct any insurance payout and/or recoveries received (from your insurance company) for car accident damage, from your motor vehicle expenses for the tax year.
Step 1: Add all your motor vehicle (car) expenses together for the tax year;
Step 2: Deduct any insurance payouts received during the tax year for car accident damage from your motor vehicle expenditure;
Step 3: Write down your vehicle’s KM balance as at 29 February 2016. Also write down your vehicle’s KM balance as at 1 March 2015;
Step 4: Calculate the difference between the two balances in step 3 above, this will give you the total KMs travelled during the tax year;
Step 5: Deduct your private KMs travelled from this balance in step 4, to obtain your business KMs travelled for the tax year. Your private KMs travelled can be seen on your logbook;
Step 6*: Now calculated how much of the motor vehicle expenditure is attributable to business travel. This can be done by using the following formula:
*The calculated amount in Step 6 will be the amount claimable as motor vehicle expenses in your tax return. This whole calculation will be disclosed in schedule 19 of your income tax return. The motor vehicle expenses claimable will then be included as a deduction under schedule 3 of your income tax return. It is important to remember that the expenditure being claimed, may NOT exceed the motor vehicle allowance received for the tax year.
Also note that you will have to retain proof of all the expenses claimed, and preferably submit this with your tax return, so Inland Revenue can verify the expenses you are claiming.
Remember if you use TaxTim to complete your tax return, then he will do all the calculations for you, no need to worry if it is correct.
 Step 1
 Step 5
 Step 4