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

By Marc Sevitz · Updated

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 Marc

TaxTim Marc said:
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.