Car allowance schemes Car allowance schemes are a highly specialised area of fleet management. FleetCUBE have developed some unique, tax efficient programmes for car allowance drivers.
TRAVELLING EXPENSES BASED ON THE KILOMETRE RATE
Where a travelling allowance was received, the amount of the deduction to be claimed may be based on the kilometre rate established in accordance with the tariffs set out in the schedule below.
The fixed, fuel and maintenance costs are based on the "value" of the vehicle.
"Value" in relation to a motor vehicle means :
where the vehicle was acquired by you under a bona fide agreement of sale or exchange, the original cost thereof to you including any sales tax or value-added tax paid by you but excluding any finance charges or interest payable by you in respect of the acquisition thereof;
where the vehicle is held, by you, under a financial lease as contemplated in paragraph 1 of the 4th Schedule to the Sales Tax Act, 1978 or a lease as contemplated in paragraph (b) of the definition of "instalment credit agreement" in section 1 of the Value-Added Tax Act, 1991, or you acquired ownership on termination of the lease, the case value thereof as determined under the said Schedule 4, together with any Sales Tax paid by the lessor, or the cash value thereof as contemplated in the definition of "cash value" in section 1 or the Value-Added Tax Act; or
in any other case the market value of the motor vehicle at the time you first obtained the vehicle or the right to use it plus any sales/value-added tax which would have been payable on the market value.
Where expenses for more than one vehicle are claimed, reasons must be furnished why more than one vehicle was used.
SCHEDULE - SCALE OF COSTS IN RESPECT OF MOTOR VEHICLES
