TRAVEL ALLOWANCE CLAIM

Q: Can I claim a travel allowance?

A: Yes, provided that you receive a travel allowance from your employer.

Q: How do I know if I do receive a travel allowance?

A: A travel allowance will be reflected on your IRP5 against source code 3701 (travel allowance) or 3702 (re-imbursive travel allowance), and you claim back the tax for the business kilometres travelled during the year.

Q: What is the difference between a travel allowance and a reimbursement?

A: A travel allowance is an allowance paid to an employee monthly for the expenses they incur for travelling on behalf of their employer. A reimbursement is a payment made by the employer to the employee after the fact, and the employer reimburses the employee for travel expenses incurred.

Q: How do I claim a travel or re-imbursive allowance?

A: You are required to record your business trips in a logbook with the following information:

  • The date of your travel;
  • The kilometres travelled;
  • The details of your business travel, i.e. where you started your trip, where you travelled to, and the reasons for the business trip.

IMPORTANT: Unlike previous years, you may note that your travel allowance claim is smaller for the 2020/2021 tax year since you travelled less due to the COVID-19 travel restrictions, and which may affect your tax liability compared to prior years.

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