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Latest Posts in TaxTim's Blog

Latest Posts in TaxTim's Blog



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Tax Return in
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TaxTim will help you:

 Do Your Tax Return Easily
 Avoid penalties
 Maximise your refund

Tim uses your answers to complete your income tax return instantly and professionally, with everything filled in in the right place.

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File by 31 October or face heavy fines and potential legal action!

Posted 11 October 2018

File by 31 October or face heavy fines and potential legal action!

With the tax season shortened this year by 3 weeks, the deadline to file by 31 October is just around the corner. SARS announced that it will be clamping down on taxpayers who miss the deadline to submit their tax return. Besides stating that they will impose monthly fines for late tax returns, they have even gone so far as threatening criminal prosecution and time behind bars for unpaid tax debt, just as many of us have witnessed with the recent celebrity headlines.

Their ominous slogan “pay your taxes or pay the price” is still in use, with the hope to encourage taxpayers to file their returns on time...

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Do You Need to Ring-Fence Your Business or Rental Losses for Tax?

Posted 10 October 2018

When pursuing a business activity, trade or renting out a property, you’re no doubt doing so to make some money, but the reality for self-starters is that there’s a good chance it’s going to take some time for your venture to break even, which can often mean facing a loss.

Your additional income is of interest to SARS as it translates into more tax revenue for them, so how do you record your loss to them? And when, how and where is the loss applied from a tax perspective?

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Why is SARS asking me for outstanding tax returns?

Posted 9 October 2018

Why is SARS asking me for outstanding tax returns?

When did this happen?

Previously, assuming that SARS did not request any documents for verification and everything for the year was accepted, refunds due were typically paid out quite quickly to taxpayers within 1-2 days.

From 2015, SARS has implemented a new requirement that ALL tax returns, since the first year a taxpayer registered for a tax reference number, must be submitted before any refund is paid out.

...

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After all my documents submissions to SARS, they disallowed my expenses, why?

Posted 4 October 2018

After all my documents submissions to SARS, they disallowed my expenses, why?

We are starting to see some common trends whereby taxpayers’ expenses are disallowed because the documents submitted are falling short of SARS’s requirements.  To avoid unnecessary frustration and time wasted in raising disputes, read on to see if any of these areas apply to you.

Travel deduction

In prior years, the submission of a logbook detailing your business mileage used to be sufficient to justify your travel claim. This year, SARS is re...

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Multiple Employers, Multiple PAYE payments. Yet I still owe SARS?

Posted 3 October 2018

Multiple Employers, Multiple PAYE payments. Yet I still owe SARS?

We receive many questions to our Helpdesk from taxpayers who are faced with the following scenario:

They work for two employers during the year, perhaps even at the same time and earn income from both. Each employer deducts employee’s tax (PAYE) from the taxpayer’s salary every month and issue them with an IRP5 after year end. They submit these to SARS in their Tax Return, however they receive a nasty surprise when they receive their Tax Assessment which indicates that they have not paid enough tax during the year and have a big bill to settle...

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Some common (and sometimes forgotten) tax deductions

Posted 25 September 2018

Some common (and sometimes forgotten) tax deductions

Many times taxpayers rush when filing their tax return then they miss out on some expenses they are eligible to claim. Don’t overpay tax by overlooking these seven common tax deductions.

Contributions towards a Retirement Annuity

Your contributions towards retirement funds are deductible for tax up to a limit of 27,5% of the greater of your taxable income or remuneration (to a maximum of R350,000 per year).  This limit applies to the total contributions you make to any Pension, Provident or Retirement Annuity (RA) fund during the year...

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Why must I submit an IRP5/IT3a if I never received any lump sum cash?

Posted 21 September 2018

Why must I submit an IRP5/IT3a if I never received any lump sum cash?

We receive many questions from taxpayers who are confused as to why they receive an IRP5/IT3a for retirement fund withdrawals or transfers and how to report this (if at all) in their tax return. If this applies to you, read on and let us clarify the issue for you.

IRP5/IT3a for retirement fund withdrawal, resignation or transfer

If you withdraw money or retire from your retirement fund and receive a lumpsum, the fund will have to apply for a tax directive for you and should also issue you an IRP5/IT3a...

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5 Reasons you Still Need to File your Tax Return in 2018

Posted 4 September 2018

5 Reasons you Still Need to File your Tax Return in 2018

SARS, once again, has  communicated that if you earn less than R350,000 in a year, and fulfil a series of complicated criteria, you may not have to file a tax return in 2018.

However, we advise you to take GREAT CARE here, and understand your duties properly, because if you don't, you may suffer for it later on.

Here are the top 5 reasons why not to skip filing your tax return this season:

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Tax Breaks For All

Posted 31 July 2018

Tax Breaks For All

What?

1.Rebates

Who?
Everybody

Primary, secondary, and tertiary rebates – depending on your age. A rebate is a set amount that SARS whacks off your total tax liability and basically represents the amount excluded by the minimum threshold to pay tax.

Primary rebate is for those under 65 years of age (on the last day of the tax year), the secondary rebate applies to those between 65 and 75 years old, and the tertiary rebate is added for those over 75 years old...

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Why have I received a smaller tax refund from SARS this year?

Posted 24 July 2018

Why have I received a smaller tax refund from SARS this year?

We receive many queries from confused taxpayers who are disappointed to see their tax refunds are smaller than the refund received last year. Often, on the surface, their income and expense situation appears unchanged, so how can this be?

If you are one of these unhappy taxpayers, read on to see some common reasons why your tax refund could be less than last year.

Carried forward retirement contributions

This one is not obvious at all and confuses many taxpayers...

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How Long do I have to wait for my tax refund?

Posted 12 July 2018

How Long do I have to wait for my tax refund?

Like in previous years, there have always been opening tax season niggles and 2018 has been no different. Patience is a virtue, so the adage goes. And when it comes to waiting for responses from most government departments, they can certainly put your skills of tolerance to the test. Our helpdesk is inundated with questions about how long SARS will take to react or respond to certain requests or submissions. The short answer is ‘typically, quite a while’. You can imagine that during their busy filing season there are hundreds of thousands of documents being processed and not all administration can be automated...

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Medical Aid Tax! How SARS' new changes affect YOU!

Posted 8 July 2018

Medical Aid Tax! How SARS' new changes affect YOU!

In 2012 SARS began making changes to how medical expenses were treated for tax purposes. The system at that time created a higher benefit for deducted medical expenses if you earned a high income (bad news for low income earners) and the changes since then have sought to make medical deductions more equal across various income levels.

Basic summary of how SARS calculates your tax

Income Earned
Less: Expenses / Deductions
= Taxable Income
x SARS tax rate ...

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When Will SARS Pay My Tax Refund?

Posted 6 July 2018

Now that the 2018 tax season is open and hundreds of thousands of South Africans are filing their annual tax returns, every day people ask us “when will I get my refund from SARS?”.

While we’re not involved in the payments of tax refunds, we can provide a little insight into the SARS processes and timelines. So here goes …

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Get your digital tax health score to help you pay less tax

Posted 3 July 2018

Get your digital tax health score to help you pay less tax

TaxTim, which helps you to complete and file your tax returns online with the help of a digital tax expert called Tim, now offers a personalised tax health score report free which could help users pay less tax.

The score is the result of an in depth automated analysis of an individual’s tax return. It makes recommendations on how to improve tax health for maximum tax efficiency.

“For the first time, taxpayers will have a report card reflecting where they can improve their tax affairs and maximise efficiency...

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What to expect in 2018 after submitting your tax return to SARS

Posted 1 July 2018

What to expect in 2018 after submitting your tax return to SARS

As soon as tax season opens in July, many taxpayers rush to submit their ITR12 tax returns as early as possible, eagerly hoping for a nice refund. After the rush, when nothing happens, they often ask us what is happening to their refund? In most cases where an income tax refund is due to a taxpayer, SARS pays it out within one or two days...

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Individual Tax Rate Tables

Posted 18 June 2018

Individual Tax Rate Tables

RATES OF TAX FOR INDIVIDUALS

2019 tax year (1 March 2018 - 28 February 2019) - see changes from last year



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How to calculate totals under source codes 3696 and 3699 for 2018

Posted 13 June 2018

How to calculate totals under source codes 3696 and 3699 for 2018

Perhaps you just tried to submit your tax return and you instantly got an error relating to 3696 and 3699. As frustrating as it could be, don’t worry the error can be fixed. Maybe, you might have just simply left an amount out. Let’s have a look at what you should do, in order to crack these codes correctly – in that way making filing much more easier for you. 

You’ll need to check your IRP5 to make sure you answered TaxTim's questions for these amounts correctly...

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How to calculate totals under source codes 3696 and 3699 for 2017

Posted 12 June 2018

How to calculate totals under source codes 3696 and 3699 for 2017

Perhaps you just tried to submit your tax return and you instantly got an error relating to 3696 and 3699. As frustrating as it could be, don’t worry the error can be fixed. Maybe, you might have just simply left an amount out. Let’s have a look at what you should do, in order to crack these codes correctly – in that way making filing much more easier for you.

You’ll need to check your IRP5 to make sure you answered TaxTim's questions for these amounts correctly. Your IRP5 can show one or more amounts with source codes describing the income you received from your employer that year. ...

Read more →

How Do Taxpayers Feel About The Proposed New Filing Deadline?

Posted 28 May 2018

  How Do Taxpayers Feel About The Proposed New Filing Deadline?

On Monday 21st May, TaxTim conducted a simple survey of taxpayers who make use of the TaxTim services about their opinion on SARS’ proposal to shorten the tax filing season by 3 weeks.

An email was sent out containing the following:

“SARS recently published a Draft Notice of who needs to file a tax return and when tax returns will be due for the 2018 tax season. SARS are planning to move the submission deadline 3 weeks earlier to 31st October 2018 for all non-provisional taxpayers. ...

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What supporting documents do I need to submit to SARS?

Posted 28 May 2018

What supporting documents do I need to submit to SARS?

After submission of your tax return, when you receive your tax assessment (ITA34) from SARS, you need to scan down to the block “Compliance Information” to see if SARS requires anything further from you. You will see “Selected for audit or verification” with a Y or N (Yes or No) next to it. If you have a N, you can breathe a sigh of relief and consider yourself fortunate that SARS probably doesn’t require anything further from you for this tax year. If you have a Y in the block (and we are seeing this more and more frequently) it means that SARS wants to see evidence or back up which supports the amounts you entered on your tax return....

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The Less Common Tax Deductions

Posted 14 May 2018

The Less Common Tax Deductions

We’re aware that sometimes taxpayers may not understand all of the deductions which appear on the tax return. And because of this, expenses that could have been deducted get missed. To help make things easier for you, we’ve explained some of these less understood tax deductions which may be overlooked by taxpayers.  They all appear in the Other Deductions section of the ITR12.

The s11(nA) and s11(nB)
If an employee is in breach of an agreement with their employer, they may be asked to pay back a benefit they received from them e.g bonus, maternity leave benefit, bursary, sign on bonus etc. ...

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Ways to get your IRP5 from your employer, if you haven't yet received it.

Posted 14 May 2018

Ways to get your IRP5 from your employer, if you haven't yet received it.

You may be employed by someone, but for one reason or another- you don't receive an IRP5 and no amount of begging of pleading will result in one being produced. If you're one of these “IRP5-less” individuals, this shouldn’t keep you from completing your tax return don’t despair or give up on completing your tax return. There’s a few reasons why you people often find themselves without their IRP5 and we’ve highlighted these below for you, read on to find out if any of these apply to you and if so, what to do about it....

Read more →

Be smart and save tax when receiving income from an Air BnB

Posted 14 May 2018

 Be smart and save tax when receiving income from an Air BnB

Taxpayers who earn Air BnB income often don’t know what they need to do when it comes to declaring this income to SARS. Sometimes taxpayers think that they don’t have to declare this extra income, or can hide it from SARS by not entering it on their tax return form - a big mistake!

The truth is that extra income earned from Air BnB income is taxable, and SARS needs to know about it. In some cases - if the amount earned (profit) outside of a salary is larger than R30,000 a...

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The 3 R's: Returns, Rebates and Refunds Explained

Posted 10 May 2018

The 3 R's: Returns, Rebates and Refunds Explained

When it comes to tax jargon, most people prefer to bury their heads in the sand instead of trying to understand all the confusing terms that tax practitioners use. Taxpayers just want to do their tax quickly and easily, and if they’re due - receive some money back from SARS. A lot of confusion surrounds the process, but by understanding three simple terms you can make tax season a little bit easier.

Read more →

10 Tips to Pay Less Tax

Posted 25 April 2018

These tips are part of TaxTim's personalised recommendation tool called the Tax Health Score. Once you file your tax return with TaxTim, we analyze it and produce your own unique Tax Health Score which recommends how you can optimize deductions, pay less tax and maximize your potential refund in the future.

The tips below cover all possible recommendations and may not be applicable to your individual tax situation. The only way to know which ones apply to you is to use TaxTim to complete and submit your tax return....

Read more →
Older posts →  1  2  3  4  5  6

Blog Categories


Do your
Tax Return in
20 minutes
or less!


TaxTim will help you:

 Do Your Tax Return Easily
 Avoid penalties
 Maximise your refund

Tim uses your answers to complete your income tax return instantly and professionally, with everything filled in in the right place.

Let Tim submit your tax return direct to SARS in just a few clicks!

Get started