As the 2026 tax season approaches, many South African employees and business owners are looking for ways to mitigate the impact of record-high fuel prices. One of the most effective tools is the travel allowance, but it remains one of the most strictly audited areas by the South African Revenue Service (SARS). Understanding the difference between what you think you can claim and what the law allows is the difference between a healthy refund and a punishing audit.
For the 2025/2026 tax year, SARS has updated its "deemed cost" tables to reflect the rising cost of vehicle ownership. If you receive a travel allowance as part of your salary, you are taxed on 80% of that allowance monthly through PAYE. To "claim back" at the end of the year, you must prove your business mileage. The golden rule remains: No logbook, no claim. SARS requires a meticulous record containing the date of travel, the destination, the reason for the trip, and the opening and closing odometer readings. Crucially, the daily trip from your home to your place of work is considered private travel and cannot be claimed as business mileage, regardless of how far you live from the office.
If you do not receive a fixed allowance but are reimbursed by your employer, the "prescribed rate" is a vital figure. For the current period, this rate is 476 cents per kilometre. If your employer pays you this amount or less, and you travel fewer than 8,000 business kilometres a year, the reimbursement is often tax-free, provided you keep that all-important logbook.
For those using the cost scales, the "Fixed Cost" component has increased significantly. For a vehicle valued between R300,000 and R400,000, the fixed cost is now R111,273 per annum, with a fuel cost of 191,4 cents per km. As fuel prices continue to fluctuate wildly, ensuring your vehicle is correctly valued on your tax return is essential.
A common pitfall in 2026 is the "Maintenance" claim. If your vehicle is covered by a service or maintenance plan, you cannot claim the maintenance component of the SARS scale, as you aren't personally bearing those costs. In a year where every Rand is being squeezed by inflation, taking thirty seconds to update your digital logbook after every client meeting is perhaps the highest-return "investment" you can make.
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