My RA allows me to make a top-up payment at any time. Please can you tell me how to calculate the optimum lump sum amount I should pay into my RA in order to obtain the maximum tax advantage for the 2015 tax year?
I earn R60,000 per month before deductions and I should receive 2 more pay cheques before year end. My income for the tax year to date is R542,283.65 (Gross remuneration on latest pay slip). Therefore income for the year will be R662,283,65 as well as rental income of R55,000 coming to R717283,65.
I have paid R13,200 into my RA during the year via debit order. Please advise what the best amount would be for ad hoc payment from my savings fund into the RA to pay the least tax possible.
And how is the calculation done? (i.e. what are the percentages and formula used)