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How to structure commission and fuel allowances for B2B field sales reps for SARS tax compliance?

We have 4 technical sales reps on the road across Gauteng driving their own vehicles. Should we give them a fixed monthly travel allowance (code 3701) or reimburse per business kilometre at the SARS prescribed rate, and how does commission affect their monthly PAYE calculation?

kobus_b◆ 48asked 27 Sept

1 answer

  1. ✓ Accepted by the asker

    Jenna◆ 92Trusted voiceon Payroll Services27 Sept
    @kobus_badenhorst If your reps keep a strict SARS-compliant logbook (opening/closing odometer on 1 March and 28 Feb, plus date, client name, reason, and business km for every trip), a fixed travel allowance (code 3701) has 80% included for monthly PAYE (or 20% if at least 80% of total travel is business-related). However, for reps who hate logbooks, reimbursing actual business kilometres at the SARS prescribed rate (code 3703) is much cleaner because no PAYE is deducted upfront if they don't also get a fixed allowance. Either way, download a GPS logbook app on day one, SARS disallows travel claims without a contemporaneous logbook automatically.

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