You end-of-tax-year checklist – 3 ways to increase your tax return before the end of Feb
In less than a month, the current tax year will come to an end and soon thereafter all South Africans will be frantically busy submitting their tax returns to SARS. It’s no secret that everyone loves getting a big juicy tax return, and why wouldn’t we? It’s a great way to help fill the gaps in debt, bulk up savings or aid in getting that luxury item you have been dreaming of.
Cornerstone Tax and Accounting Services believes in empowering our clients and helping them to achieve their financial goals through expert advice and guidance as well as continuous support. With this attitude in mind, here are a few ways to increase your tax return within the next month so that you can get the most out of your tax return this year.
Make an additional voluntary contribution to your retirement savings
This is probably the best way to not only increase your tax return, but to bulk up your retirement fund for the future. With the world economy being very unpredictable lately, the future might be less certain and it’s vital that you prepare for your golden years by saving more and investing smarter.
If you need help with investments, financial planning or retirement planning, be sure to get in touch with Cornerstone Financial Planning today.
Furthermore, remember you can claim 27.5% up to R350 000.00 of your taxable income or remuneration back from the tax man. Yet, many people only contribute between 10% and 15% of their income to their retirement funds, losing out on a massive tax return benefit. Now, putting away more than a quarter of your income is tough and for many, simply impossible. But even the smallest additional contribution can make a massive difference.
Whether it’s a retirement annuity, pension fund or provident fund, if you make an additional contribution before the end of February, you’ll be able to significantly increase your 2019 tax return.
Donate to a registered non-profit organisation (NGO)
With over 100 000 registered NGO’s in South Africa alone, it’s not hard to find one to support and make a difference in the lives and communities of the less fortunate. As South Africans, we are all familiar with the spirit of Ubuntu and lending a helping hand to those in need can only help to build a better and more prosperous South Africa.
Also, all contributions made to a registered NGO with a Public Benefit Organisation (PBO) number, can be claimed back from SARS up to 10% of your annual taxable income. Remember, it must be a registered NGO with a PBO number, if you donate to an unregistered charity of organisation, you won’t be able to benefit from the tax break. Furthermore, you’ll have to request a section 18A certificate from the NGO which you’ll have to submit to SARS with your tax return.
Start getting your paperwork in order now
It’s crucial that you have all your paperwork in order before tax return season starts. Having a well-structured tax return will make your tax return easier and your pay-out faster while decreasing your chance of an audit. Here are some items to remember:
- Your IRP5
- Your medical aid tax certificate
- The invoices of any out-of-pocket medical expenses
- Section 18A certificates from any NGO’s your supported
- For all travel claims, a completed log book that complies with SARS requirements. Be sure to include all slips from fuel spend.
Don’t forget to contact Cornerstone Tax and Accounting Services for all your tax, accounting, bookkeeping and payroll needs. Also, for more updates on events, financial news and more useful content, follow us on Facebook and LinkedIn.