Dear Reader

In this issue:

• How much should we pay our travelling employee, for meals?
• Daily subsistence allowance increases
• If you can’t prove it, SARS will deny it!

How much should we pay our travelling employee, for meals?

I received a query yesterday, about the daily subsistence amounts that employers should pay to employees: “Our employee often travels around the country for work. We cover the cost of his accommodation, and we also pay him a subsistence allowance, for meals and refreshments, etc. How much should we be paying him each day, as a subsistence allowance?”, wrote Mike.

And seeing as the SARS Commissioner has just recently increased the daily amount for subsistence allowances, I thought I’d share the news with you too.

Daily subsistence allowance increases

Remember that these new amounts are applicable from 1 March 2010, and apply to local business travel (not International business travel).

If you can’t prove it, SARS will deny it!

As I’ve told Mike, he must be able to prove that the employee is travelling for business. Likewise, the employee must be away from home for more than one night, to qualify for the allowance.

So make sure your payroll system is up to date, and that your frequent travellers are kept up to date too!

Until next week,

Fulvia Becatti,
Managing Editor: Practical Tax Handbook & Practical Vat Handbook