Apart from accountants and tax practitioners, not many people enjoy the topic of income tax returns in South Africa. Understandably so, since tax for the average citizen means complex calculations, difficult to understand procedures, and equally complicated forms. Common mistakes with income tax returns can lead to penalties and financial losses. However, below are some of the mistakes that you can avoid when making use of our services.
Failure to submit income tax returns
Not filing tax returns as required is an offense. You are liable for payment of hefty penalties for doing so.
Filing tax returns late
Keep in mind that you want to stay on the good side of SARS, and the only way to do so is to be tax compliant, also when it comes to on-time submissions of tax returns.
Not claiming allowable deductions
You end up paying more tax than required simply because you do not claim the various allowable expenses.
Using the wrong forms
Choose the correct form and categories. Mistakes made in this regard can also mean penalties and you will have to redo the tax calculations and submissions.
Not having proof of expenses
If you want to claim deductible expenses, you must have proof of payment for such and must make sure that the deductions are done correctly.
Apart from helping you to avoid the above mistakes regarding income tax returns, we are also able to assist you in actually getting a refund from SARS, as and when relevant. Understanding which deductions are allowed can help you to actually save money. We assist you in determining which deductions can be claimed, some of which are briefly noted below.
Pension contributions
You can also reduce your tax liability by claiming the allowable deductible expense upon submission of your income tax returns. This includes contributions to retirement funds and annuities. If you contribute to an employer owned and managed pension fund, you already receive the tax liability reduction on a monthly basis.
Donations
If you donate to a Public Benefit Organisation (PBO) that is SARS approved, make sure that you get the 18A certificates from the beneficiary, as you will have to submit them to receive the tax liability reduction from SARS.
Travel claims
Travel allowance from your employer is tax deductible, provided you have a logbook and keep it in the manner required by SARS.
The above are just three of the allowable deductions that can help reduce your tax liability. Make use of our professional services to help you avoid common income tax return mistakes and to assist you in reducing your tax liability.