Like in previous years, there have always been opening tax season niggles and 2019 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...
TaxTim and SARS use all the financial information you provide to work out the most accurate estimate of your potential refund (or tax liability) for the current tax season. However, there may be some information we don’t have access to, or information from prior years we don’t know about, that won’t be included in the estimate of your tax refund or tax liability.
Just like the SARS eFiling tax calculator, TaxTim doesn’t take into account provisional tax payments, unpaid penalties, carry-over amounts from previous years and assessed losses...
By now you would have seen the latest announcement by the SARS commissioner to increase the qualifying threshold for certain taxpayers to submit a tax return from R350 000 to R500 000. Along with this news, came some changes to the tax season filing dates and deadlines.
Our help desk has been received many queries about these changes. Since the start of tax season is just around the corner, we...
Our helpdesk receives hundreds of questions from commission earners about how their tax is calculated. Many are also confused about which expenses they can claim. Hopefully our FAQ will help other taxpayers who might be puzzling over the same issues.
1. I have a salary and earn a small commission; can I claim for my travel to and from work every day? (The commission is based on the sales that my team makes telephonically per month).
SARS has just announced that if you earn less than R500 000 in a year, and fulfill a series of complicated criteria, you may not have to file a tax return for 2019. Previously, SARS had communicated that if you earn less than R350 000 in a year you may not have to file a tax return.
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:
There are times when the call centre agent from SARS is unable to resolve your issue and you need to reach out to a more senior person at SARS.
You can request to speak to a team leader / operations manager or the branch / call centre manager and they should be able to assist you. Always remember to note down the case number for your call. If however, you're not satisfied with the outcome of the issue, you can lodge a formal complaint with an agent at a SARS branch or on eFiling (if y...
Tax season always throws up some interesting and confusing calculations, but for many, the most confusing of all is how medical aid contributions and Out of Pocket medical expenses are treated.
Effective March 2012, the Medical Aid Tax Credit was introduced. Prior to this date, your contributions to medical aid were deducted from your income earned in order to work out your tax, much like other tax deductible expenses...
This week we zoom into Wear and Tear also commonly known as Depreciation. Below we've covered some of the top questions we've received from our Helpdesk. Take a quick read through our Q&As and see how your pressing depreciation questions can potentially be solved.
It’s that time of the year again and employers are issuing their employees IRP5s for the 2019 tax year. An IRP5 is a tax certificate which shows the total employment income that you earned for the tax year, the total employment related deductions that were taken from your income and paid over to either a retirement fund (pension, provident or retirement annuity fund) or a medical aid and the total tax (PAYE, UIF and SDL) that you paid...
If you are an Uber driver, you use your own vehicle/s to generate your income and you determine your own working hours, you will be treated as being self-employed (i.e. an independent contractor) for tax purposes.
From our numerous interactions with small business owners, it seems that many draw up the company’s financial statements by themselves, without engaging the services of a professional. Many don’t use accounting software but opt for a simple excel spreadsheet instead. Although this is cost-effective, it can be a daunting task, particularly for those with a sketchy (or non-existent) accounting background.
Below we take a look at Capital Gains Tax, particularly relating to the primary residence exclusion. What we’ve covered are some of the most pressing questions asked by our users on our help-desk. Take a few minutes to read the Q&As. Hopefully what has been unpacked in these Q&As will benefit and assist you with any uncertainties you might have experienced regarding this topic.
Flexible employment is becoming increasingly popular, many taxpayers spend some (or all) of their time working from home. If certain conditions are met, taxpayers are allowed to claim a portion of their office running costs as a tax deduction on their tax return. However, please note that SARS usually flags these returns for audit. If you do work from a home, take a read of our home office blog and also check out our handy decision tree to make 100% sure you are claiming this expense correctly.
We receive many relevant questions from our users about what they can claim as a tax deduction if they or one of their dependants suffers from a disability. This week, we will focus on this issue and hopefully help other taxpayers out there who may have the same questions.
This week we received some questions from our users on retirement fund contributions and the laws that govern it. We hope that this helps you as you start gathering your documents for the new tax season.
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.
In 2017, National Treasury announced that there would be changes to the Foreign Employment income Exemption. These changes were intended to target those South Africans working overseas on expat contracts, who had not formally emigrated and were intending to return ‘home’ to SA at a later stage. The proposed amendments would have seen South Africans working overseas in lo...
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.