Allowances
Allowances are usually a specific amount paid in addition to an agreed salary, such as meal allowances, tool allowances, uniform allowances and overtime allowances. One of the largest areas of non-compliance with the legislation is in the declaration of allowances.
All allowances paid by an employer to an employee are liable for payroll tax except for the exempt component of allowances paid for overnight accommodation and use of the employee's own motor vehicle for work purposes.
Last updated: 2008-05-09
