Rands & Sense

Tips to ensure a smooth filing season

There are ways you can make filing easier for yourself, says

Yolandi Esterhuizen

In August, many South Africans received autoassessments for their 2019/20 personal income tax returns from SARS. For those who didn’t receive an autoassessment, tax filing season got under way on September 1.

Taxpayers who file online using e-filing have until November 16 to submit their returns. Other taxpayers who cannot file electronically can visit SARS branches with an appointment until October 22. Provisional taxpayers who file electronically have until January 29, 2021.

The year of assessment runs from the first day of March to the last day of February. The income you should declare on your return is for March 1, 2019 to February 29, 2020.

Here are some tips to make filing easier for you:

1. Declare all sources of income

Your employer will report your remuneration to SARS and pay tax on your behalf throughout the year. But you also need to declare extra income you make from sources such as side hustles or freelance gigs, renting a property to a tenant, or interest. You will also need to declare capital gains. SARS may already have information available to them submitted by third parties – for example, interest earned and contributions to retirement funds or medical schemes. Confirm the data you submit to SARS is correct by comparing it to the tax certificate issued by the financial institution, bank or fund. In most cases, these will be emailed to you, but you can usually also download them from the institution’s website.

2. Gather supporting documents for any expenses you can claim

Remember to claim any allowable expenses you incurred while you were earning your income. If you received a travel allowance from your employer, be sure to claim your business expenditure, otherwise the full amount of the allowance will be taxable. If you rent out a property, some maintenance and running costs may be tax-deductible. If you earn mainly commission or freelance income using your own equipment and facilities (such as computers, tools, and phone), some of the costs may be tax-deductible. Also ensure that SARS is aware of your allowable tax-deductible donations.

Medical expenses such as prescription medicine or doctors’ visits that your medical scheme didn’t cover should also be indicated on your return, as SARS will apply a formula to calculate how much you will be allowed as a tax credit. Make sure you have the necessary statements and certificates to substantiate your claims. It’s a good idea to scan and file paperwork throughout the year and to track your expenses on a spreadsheet.

3. Consult with a registered tax practitioner

A registered tax practitioner can be helpful when you’re filing your return, especially if your affairs are relatively complex. He or she might be able to identify legitimate tax deductions that can help you to bring your tax bill down.

Yolandi Esterhuizen is a registered tax practitioner and compliance manager at Sage Africa & Middle East