When does it make sense to have a travel allowance?

PERSONAL FINANCE

If you are required to travel for work, there are several ways to claim for this expense – for example, you could receive a travel allowance or be provided with a company car.

In the case of a car allowance, the employer would normally pay a set amount, for example R5 000 a month. Generally, only 80% of that is taken into account as remuneration for tax purposes. In other words, R5 000 x 80% = R4 000.