1 April 2022 at 14:44
I am currently completing my 2 daughters, my son in law, my husband and my tax returns for the 2015 tax year and I am unsure of code 3801 and 3810 on my daughter's tax return. What could these fringe benefits be? I don't see it on her payslips? Her salary structure is that her salary as a cash amount and travel allowance on her payslip as well her medical aid, disability, provident, Income protection insurance and ancillary fee but her IRP5 does not show the above on her IRP5?
Confused! Does this mean that she can claim income protection, disability and life as well as her Medical Aid as she is paying this 100% from her salary package?
1 April 2022 at 17:19
Code 3810 is the employer's contribution towards Medical Aid. This is a taxable fringe benefit, you should see the same amount under the deductions section on her IRP5. You need to complete the Medical Section of the Tax Return and include details from the Medical Aid Tax certificate. The Tax Return specifically asks for contributions made which are not reflected on the IRP5.
Code 3801 is a code for General Benefits. Seeing as your daughter's employer contributes toward an income protection insurance for her, you need to answer "yes" to the question do you make income protection contributions and then these must be inserted next to source code 4018. Please note, from 1 March 2015 (i.e., for the 2016 Tax Return) this will no longer be allowed as a deduction.
Disability and Life Insurance are not deductible. Your daughter can also not claim a deduction for her business travel if she did not use a logbook to diarise her trips, if she did, please ensure that it's in the same format as the SARS logbook to avoid SARS rejecting your claim.