IOL Money Issue 3_October 2020

Nicci Courtney-Clark offers the following guidelines for doing your eFiling this year

1. Ensure you have a tax number and eFiling profile If you have not registered for SARS eFiling or you don’t have a tax number don’t worry, SARS has made things a lot easier this year. Getting a tax number is now as easy as registering on SARS eFiling. SARS will automatically issue you with a tax reference number on registration. You are required to have a valid South African ID.

2. Make sure your bank details are correct You can do this online via your SARS eFiling profile. If you are unable to do this online, you can take all your documents to a SARS branch and a consultant should be able to update your records for you. Be sure to call ahead (SARS: 0800 007 277) to check Covid-19 protocols at the branch.

3. Don’t accept auto-assessments if you want to claim deductions SARS may have contacted you in August via SMS to auto-assess your taxes. We advise you not to accept the auto-assessment and rather file your tax return yourself. This will prevent you from losing out on your full refund, or in the worst-case scenario, not receive a refund at all. The auto-assessment does not allow you to claim tax deductions like travel expenses, donations, home office, wear and tear of assets, etc. Nor will it include any extra medical expenses you paid yourself.

4. File your tax return for the following reasons: * Don’t miss out on your tax refund. A tax refund may be due to you. Something as simple as claiming medical expenses or working for less than twelve months of the year may trigger a tax refund, depending on your situation. * You may not be able to borrow money. Often banks require a tax clearance certificate in order to offer you a loan or mortgage. This can only be obtained if all your returns are up to date and filed appropriately. * You may incur penalties. If you normally submit, but this year you don’t, SARS could charge you administrative penalties later on for not being compliant. And no one wants that. * You may not be able to access your retirement fund. Filing a tax return each and every year means that if you receive a pay-out from a fund at any stage, then you won’t have hassles in getting your money. If you retire or are retrenched, or just need to take money out of your fund early, you need to be tax compliant. * A complete record stands in your favour. Don’t be shady. Having an unbroken filing record leaves SARS with no reason to suspect that you’re hiding information from them, which is a good thing. Filing a tax return also means that you’re being a decent citizen and contributing towards society!

5. Get your documents ready Here’s six of the most common documents you will need: * IRP5/IT3a from your employer / pension provider * Medical aid certificate * IT3b/IT3c showing your investments * Retirement annuity certificate * Public benefit organisation certificate showing your donations * Travel logbook for business travel

6. Claim for all your expenses Too often, taxpayers rush when completing their tax return, and then they miss out on some expenses they are eligible to claim fol. Don’t overpay tax by overlooking these seven common tax breaks: * Saving for retirement * Medical expenses * Giving to a SARS-registered charity * Wear and tear on personal assets used for work (for example, laptop and cellphone) * Home office expenses * Business travel expenses * Business expenses for entrepreneurs or commission earners 7. File with confidence With the ever changing environment in which we live, it’s important that when you do take tax matters in your own hands, that you do so with confidence. Filing online can be daunting at times, especially when you hear news about SARS wanting to make it a criminal offence if you make mistakes on your tax return. If you are not comfortable enough doing your own tax return on eFiling, try a service such as TaxTim. TaxTim is a tax practitioner-assisted DIY tax return system that asks you all the right questions in simple language that anyone can follow. It then uses your answers to fill out your tax return for submission directly to SARS. Go to www.taxtim.com to find out more. Nicci Courtney-Clarke is financial manager and head of tax at TaxTim