Do your Tax with TaxTim and WIN R10,000  More info   T&C's apply


How do I know whether to deduct wear and tear or lease payments on travel claim against allowance



I receive a vehicle allowance and use a hired purchased vehicle for business use and need to know how to choose between depreciation (wear & tear) or lease payment on Travel Claim Against Allowance.

I guess what I'm asking is whether SARS sees a hired purchase payment the same as a lease agreement payment.

May I choose between the greater of the two?

TaxTim TaxTim says:
20 November 2014 at 16:19

This is a lease payment so you would be able to put that amount for the full year. If you are using eFiling then you are able to test using their calculator which is to your advantage. Depreciation would be written off over 7 years. However a HP generally gets put and not depreciation.

This entry was posted in Tax Q&A and tagged , , , , , , , . Bookmark the permalink.




Submit your tax return right here!

TaxTim will help you:

 Do Your Tax Return Easily
 Avoid penalties
 Maximise your refund

Tim uses your answers to complete your income tax return instantly and professionally, with everything filled in in the right place.

Let Tim submit your tax return direct to SARS in just a few clicks!

Get started

Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →

Get SARS Tax Deadlines in your Inbox
We'll tell you when you need to file, along with tax tips and updates.