Tax Tips For 2018

The 28th of February marks the end of the financial year. All information up to this date will be included in your 2017/18 tax return, including all tax deductions. So, make sure you have your paperwork up to date. This also takes the stress out of finding these documents when the time comes to file your return.

1. Top-up your retirement annuity

You can invest up to 27,5% of your income (to a maximum of R350 000) tax-free into a retirement fund. This is a great way to reduce your tax burden, while securing your retirement. So use this opportunity to calculate how much more you can top-up your retirement fund to maximise this benefit.

2. Use your R33 000 tax-free savings advantage

You are allowed to save up to R33 000 each tax year into a tax-free savings account. Maximise this benefit by paying a lump sum into your tax-free savings account this month. Consider setting up a debit order to bolster your savings for the rest of the year.

3. Write down your odometer reading

If you claim business travel you need to be keeping a log book. Make a note of your odometer reading and finalise your log book, which you’ll need to submit with your tax return later in the year. It’s also a good idea to make a commitment to constantly keep your travel logs up to date for the rest of the year.

4. File your expenses

If you have expenses that you are able to claim as tax deductions, including medical expenses, make sure you have filed these or request statements and proof of payment. If you are claiming medical expenses that are not reflected on your medical scheme statement, SARS will require proof of payment and will want to check that you are not double claiming through your medical scheme. Ideally, you should try to put all medical expenses through your scheme, even if they don’t pay, as it provides a single record for SARS.

5. Assess your capital gains tax

If you’re planning on selling assets such as shares or unit trusts, you can spread the tax burden over two financial years and benefit from the R40 000 tax exemption per tax year by phasing the sale over two months.

If at any point you are concerned about your tax affairs, speak to your financial adviser so that you can get your tax affairs in order before the financial year end.