Are you ready for 2014 tax season?
With all the things one has to do each day, who’s got time to worry about tax? With the penalties for late submission and payment, we all have to make time to check that our tax affairs are in order and that we comply and do it on time.
Tax season is underway
Now is the time for you to ensure that all the information required by SARS has already been submitted (EMP501) and that the IRP5’s / IT3’s are ready for submission.
If for some reason your affairs are not in order, you better move quickly and get some professional help and ensure that you submit as soon as possible to prevent fines and penalties.
You should also make sure that your expenses for the past 12 months are recorded, with original documents on file. SARS might not ask you for all of these documents, but they could request them later on, and if you can’t produce them you may find yourself with a taxation headache.
What is tax and who is it for?
Income tax is the normal tax which is paid on your taxable income, such as salaries, rental incomes and pension incomes.
You are liable to pay income tax if you earn more than R70 700 in the 2014 year of assessment, and are younger than 65 years of age. If you are 65 years of age or older, the tax threshold (i.e. the amount above which income tax becomes payable) increases to R110 200. For taxpayers aged 75 years and older, this threshold is R123 350.
How should you submit your tax?
There are three ways in which you can submit your tax returns:
Online
The easiest and quickest way to file a tax return is online, by making use of SARS eFiling
In a SARS branch
The tax return can also be requested by visiting any SARS branch office
By making use of a professional
A tax consultant, auditor or accountant can assist you at a fee
Nobody likes to pay taxes but it is something we have to do so make sure you do it – do it properly and do it on time.
What documents do you need to submit?
When completing your return, you will require the following documentation in order to verify the existing, pre-populated information that appears in the return, as well as to complete any remaining portions:
- IRP5: This is the employees’ tax certificate your employer issues to you.
- Certificates you received for local interest income earned.
- Any other documentation relating to income received or accrued, such as remuneration that has not been reported to SARS by your employer, or business or investment income, etc.
- Details of medical expenses paid and medical scheme contributions made.
- The relevant certificates reflecting your retirement annuity fund contributions made.
- A logbook and other documents in support of business travel expenses (if the travel allowance is part of your remuneration or if you have the right of use of a company car taxable benefit).
- Any other documentation relating to the allowable deductions you wish to claim.
Completing your tax return is not difficult but can become tricky when it involves a business or trust and often it is worthwhile investing some money in getting a reliable professional to assist you. It can save you a lot of time and money in the long run.
For more information and some tips from SARS click here.