Tax Season 2018

Tax Season 2018 starts 1 July 2018 and ends 31 October 2018

Some of us dread the word tax and others get quite excited, because there might be a refund from SARS as a little mid-year bonus. So, whether you are nervous or excited, either way we have to get it done.

When I help individuals prepare their tax returns, I always ask them to supply me with the following documents:

IRP5 from your employer: This one is easy. Your employer should already have given you this document.
IT3 from bank or financial institution: This one is important if you earn interest on an investment. Again, your bank or financial institution should have given this to you.
Medical aid tax certificate: You can deduct your contributions to your medical aid and also a portion of your family members’ contributions. You can also claim the medical expenses that the medical aid did not cover (but you have to be able to prove it). Your medical aid will send your certificate to you.
Retirement annuity tax certificate: You can deduct your contributions to any retirement annuity. Your financial institution will send you your tax certificate.
Donations tax certificate: If you made a donation to a registered PBO, and you want to deduct the donation from your income, you can get a donation tax certificate from the organisation you have donated to.
Travel Logbook: If you receive a travel allowance you need to supply a logbook. You can then claim all your business km from your travel allowance. The logbook needs to contain a description of your vehicle including the registration number, make, model, year and purchase price. The logbook needs to show your odometer reading as at 1 Mar 17 and then details of all your business trips for the year until 28 Feb 18 ending off with the closing odometer reading.
Schedule of expenses with regards to earning a commission: If you earn commission and the commission is more than 80% of your salary income, you can deduct other expenses that you incurred that assisted you in earning this commission income. You need to make a schedule of these expenses. This is simply a list of expenses you incurred during that year. Make sure you keep all the receipts too! In a future blog I will make a video to show you an easy way to keep such a schedule, and it will make your tax practitioner very happy!
Schedule of Rental Income: If you earn rental income for one or more properties, you need to make a schedule of income and expenses for these properties. The schedule needs to show your rental income less expenses for example – rates and taxes, interest on bond, repairs and maintenance and agent fees. It needs to show the profit or loss that you made for each property for the year.

If you have all the information ready, not only will the whole process run much faster and smoother, your tax practitioner will spend less time working on your return which should save you money too!

If you have any questions about what I wrote in this blog, or you have suggestions for future blogs, or you think you may need help with your tax return, you can contact us at any time.