Wear & Tear
Finance → Wear & Tear manages the tax write-off of fleet assets: the SARS wear-and-tear allowance each asset has earned, reconciled against its book depreciation, with the deferred-tax consequence computed.
Choosing the view
Pick the Employer, the As at date, and the Asset.
Setting the schedule
For the selected asset, set its SARS write-off basis and save with Save schedule:
- Write-off basis — Straight-line (§11(e)) or Accelerated (§12C, 40/20/20/20).
- Write-off period (months) — the §11(e) write-off period.
- Tax rate (%) — the rate used for the deferred-tax line.
Reading the reconciliation
The statement shows, as at the chosen date:
| Line | Meaning |
|---|---|
| Cost | The asset's cost |
| Wear-and-tear allowance to date | The cumulative tax allowance claimed |
| Tax value (NBV) | Cost less allowances — the SARS view of the asset |
| Accumulated depreciation / Carrying amount (NBV) | The book view |
| Temporary difference | Tax value vs carrying amount |
| Deferred tax | The temporary difference at your tax rate, labelled as an asset or liability |
Why it matters
The tax and book views of the same asset almost never agree — accelerated §12C write-offs run ahead of book depreciation. This page keeps the difference, and its deferred-tax consequence, explicit per asset instead of a year-end spreadsheet exercise.