There are three ways to claim vehicle costs, and every one of them dies without a logbook. For 2026/27 the SARS prescribed rate is R4.95 per business kilometre (up from R4.76). For a one-bakkie sole prop doing moderate kilometres, the per-kilometre rate usually wins; the actual-cost method wins on expensive vehicles with heavy running costs. Pick a method and commit to it for the year.
The three methods
1. The prescribed rate: R4.95/km (2026/27). Multiply your logged business kilometres by the rate. No expense tracking needed, just the logbook. A reimbursement paid to you at up to this rate is also tax free. Best for: a single bakkie, moderate kilometres, minimal admin.
2. Travel allowance with the deemed cost table. This applies inside a company structure, where your Pty Ltd pays you a formal travel allowance. The deemed cost per kilometre is looked up by vehicle value in SARS's annual cost table (fixed and variable cost bands); use the current year's table on the SARS website rather than any reprinted version. PAYE treatment: 80% of the allowance is subject to monthly PAYE, dropping to 20% if the employer is satisfied at least 80% of use is business. The logbook then settles the real claim at assessment. Best for: directors of their own Pty Ltd.
3. Actual cost. Track every rand: fuel, oil, tyres, maintenance, insurance, licence fees and wear and tear on the vehicle, then claim the business-use proportion (business km over total km). Best for: high-value vehicles where real costs beat R4.95/km.
The logbook: non-negotiable
Per SARS's travel logbook requirements:
- Odometer reading on 1 March (the first day of the tax year)
- Odometer reading on the last day of February
- Every business trip: date, where from, where to, the business reason, and the kilometres
- One logbook per vehicle
No opening and closing odometer readings means no deduction, whatever else you kept. And the daily run from home to your regular site is private travel, not business kilometres; trips between sites, to suppliers and to quotes are business.
Which method fits
- One bakkie, under roughly 30,000 km a year, sole prop: the R4.95/km rate
- Expensive vehicle (R500,000 plus) with high running costs: actual cost
- Director drawing a travel allowance from their own company: deemed cost table plus logbook
- Several vehicles in the business: actual cost per vehicle, separate logbooks
Worked example (2026/27)
A tradie drives 25,000 km in the year, of which 18,000 km are logged business trips (72%):
- Prescribed rate: 18,000 x R4.95 = R89,100 deduction
- Actual cost: total running costs of R60,000 on a R200,000 bakkie; business share 72% = R43,200
The rate method wins comfortably here, and that is typical for an ordinary bakkie. Flip the numbers (a R700,000 double cab, finance costs, big services) and actual cost starts to overtake. Run both once mid-year and you will know which side of the line you sit.
Common mistakes
- No odometer readings on 1 March. The whole year's claim rests on two numbers most people forget to record. Photograph the dash today.
- Claiming the commute. Home to your regular workplace is private; SARS verification checks this first.
- Reconstructing the logbook in July. Backfilled logbooks read like fiction and get treated accordingly (see SARS Verification and Audit).
- Switching methods mid-year. Choose per vehicle, per year, and stick to it.
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