(9 MARKS)

Helena owns a motor vehicle that cost her R180 000, inclusive of VAT but exclusively of any finance charges. She received a travel allowance of R2 400 a month from her employer during the 2018 year of assessment. She travelled 40 000 km during the 2018 year of assessment of which 8 000 km was travelled for private purposes. Helena kept an accurate logbook. The following actual costs (which include VAT where applicable) were incurred by Helena:

• Fuel costs                                                        R18 000
• Maintenance costs                                             24 000
• Insurance                                                            12 400
• Finance Costs                                                     12 000
• License cost                                                            400
• Toll Fees                                                                 350                     

REQUIRED

Calculate the taxable amount of the travel allowance using the deemed cost method only for Helena for the 2018 year of assessment. Clearly show all your workings.                                   (9)