It feels like we’ve only just kicked off 2023 and here we are already starting to talk about tax year-end. The reality is that Tuesday, February 28 is fast-approaching and brings to an end yet another tax year.
For Payroll Departments, it marks the start of a very busy and stressful time when SARS will soon announce employer filing deadlines requiring Payroll Practitioners to reconcile the entire year’s income and tax for all individuals on their payrolls. A short paragraph describing what will require weeks of late nights and many cups of coffee.
For some lucky taxpayers, it means an opportunity to get a tax refund from SARS. Taxpayers have some weeks to consider the following aspects that could help save a little on tax and hopefully secure a tax refund:
If you have some spare cash, top up your retirement annuity, within the allowed limits of course! A reminder of the retirement fund limits: 27.5% of your remuneration up to the limit of R 350 000 per annum. Remember if you are in the top tax bracket, you will be saving quite a healthy amount of tax!
Do you have a tax-free savings account?
If you don’t have a tax-free savings account, it may be worth considering. You can top up your tax-free savings account, but remember that the contribution limit is R36 000 and anything that you earn from any excess you put into this account will be taxed quite steeply.
Have you received a Travel Allowance?
If you received a travel allowance during the tax year, be sure to get your logbook in order and up to date. Take a picture of your mileage as of 28 February, this is good practice and handy information just in case you get audited by SARS. If you get this wrong, you could find SARS reassessing your travel allowance and you may be in for an expensive tax surprise.
Does your business keep stock?
If you are in the business of keeping some form of stock, remember to do a stock take and get an updated valuation.
Medical Aid and Medical Bills
Now is the time to start collecting medical bills that weren’t paid by your medical aid company as you may well find that some of these expenses you can quite easily and legitimately claim back from SARS.
Donations to a PBO
Did you donate to a PBO? You may be in for a tax rebate here. Get on top of the required paperwork to ensure you don’t miss the opportunity to claim your donations tax rebate!!