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What is the difference between wear and tear allowance v depreciation?

Posted 23 April 2013 under Tax Q&A


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If a small business selling Lollies and sweets buys a production machine from china for R50 000.00, a fridge for R1 500.00 , small kitchen appliances and utensils to the value of R1 800.00 (various) and a car to use for driving to markets to sell lollies and sweets. Where and how would I use wear and tear allowance or depreciation and what is the difference? Can small items such as kettles and cutlery be seen as assets?

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TaxTim TaxTim says:
25 April 2013 at 11:43

Wear and Tear and Depreciation are essentially the same thing, but for tax and accounting purposes respectively. You can write off assets used for business purposes according. If you click Tax Help on the TaxTim page and look under Wear and Tear you will see the write off periods for assets.

There are also different write off periods for small businesses such as yours as well so you could benefit from those as well.


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Blog Categories


Small
Business
Tax Returns
Made Easy


TaxTim will help you:

 Do Your ITR14 Tax Return without a Tax Expert
 Claim for all the Deductions your Business Qualifies for
 Turn your Accounting Records into a Tax Return

TaxTim asks you simple questions about your business, then processes your answers and completes your ITR14 business tax return instantly.

Get started