Staff author
Wear-and-tear allowance: Claiming for equipment you use for work
Section 11(e) of the Income Tax Act allows taxpayers to claim a wear-and-tear deduction for personal assets used to produce income. The deduction spreads the cost of the asset over its useful life, according to SARS depreciation tables.
How it works
SARS Interpretation Note 47 dictates the prescribed write-off periods for various asset categories. Standard computers are written off over three years, while office furniture takes six years. To claim this allowance, you must provide the original proof of purchase showing the date and cost. You must also calculate a reasonable percentage split between business and personal use.
Specific Scenarios
* Scenario 1: The freelance designer. You buy a R30,000 high-end computer strictly for client design work. You retain the invoice and claim R10,000 per year for three years against your freelance income.
* Scenario 2: The small asset. You buy a specialized tool for work costing R6,000. Under current legislation, assets costing under R7,000 can sometimes be written off in full in the year of purchase, rather than spread out over several years.
* Scenario 3: Apportionment. You purchase an R18,000 camera, using it equally for paid photography gigs and personal family holidays. You divide the R18,000 by the designated lifespan (e.g., three years) and then halve it, claiming R3,000 per year.
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When you are not eligible
Salaried employees generally face immense difficulty claiming wear-and-tear on general equipment unless their employment contract explicitly requires them to provide their own tools. If the asset is purely for personal convenience, the claim will be disallowed.
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Disclaimer:This article is for informational purposes only and does not constitute financial or tax advice, and is not exhaustive. Tax laws are complex and subject to change. We strongly recommend consulting with our registered tax practitioner to address your specific circumstances.