When it comes to filing tax returns, preparation is key. While tax season is only for a few months in the year, there are steps you can take throughout the year to make your tax submission as smooth as possible. So says De Wet de Villiers of AJM Tax in this episode of The Fat Wallet Show.
Use the below as a checklist to ensure your next return is as easy as can be.
- Even though you only deal directly with SARS a few times a year, it’s a good idea to set aside time every quarter to consolidate your deductibles and get your ducks in a row.
- An administrative error can delay your return and the rebates due to you. Draw a statement from the eFiling platform and ensure all your details are correct. This includes your address, telephone number, your bank accounts and email address. Don’t let a clerical error trip you up.
- Auto-assessments were introduced this year. The system still has a few bugs, so don’t just accept your auto-assessment. According to De Villiers, it’s not uncommon for the wrong person’s details to be included.
- Your previous year’s tax return is a good indication of where you should end up, especially if not much has changed. Use that as a reference point to ensure you’ve included everything.
- Keep a working tax document throughout the year where you list all your sources of income. According to De Villiers, people often forget to declare income from side-hustles.
- Make sure you submit the appropriate tax documents for all your accounts, including your brokerage account and any interest-earning accounts.
- Provisional taxpayers can claim back a number of expenses. It’s therefore important to keep good records of any business-related expenses throughout the year.
- If you earn a salary and tax gets deducted from your account every month, it’s worthwhile to speak to your human resources manager about deductions for any private medical aid contributions or retirement annuities. An adjustment to your pay-as-you-earn (PAYE) tax means you pay less tax monthly instead of getting an annual rebate.
Being tax efficient is an important part of great financial management. In this blog, a group of South African tax experts share their tips and explanations on tax issues. Learn everything you need to know about tax, from deductions you never knew about to retirement savings and capital gains. The first Tuesday of every month is Tax Tuesday. Don’t miss it!