FINANCIAL YEAR END - YOU AND YOUR BUSINESS

Article by: Hartebeespoort Accountant: Martiza Eybers

So, in case you weren’t aware of it, 29th February signifies the end of the financial year for all individuals, trusts and most companies.

Ever wondered why the Financial year end is so close to Christmas? It’s the SARS’s way of extending the season of giving! In their minds preferably from you to them, rather than the other way around.

Now, with this very important date rapidly approaching, what should you be aware of to ensure the “season of giving” is skewed in your favour?

Individuals

• Logbook – If you get a travel allowance make sure your logbook is up to date by recording your closing kilometres for the year on 28 February.
• Retirement Annuity – Is there an option for you to make a “top-up” payment?
• Donations – Are your deductions tax deductible? If they’re made to Section 18A organisations they are.
• Section 12J Investment – This is a new one, but any investments into a S12J company are 100% tax deductible.

Companies and Trusts

• Small Business Corporation – Check if your business qualifies as an SBC and benefits from a sliding scale of tax as well as accelerated depreciation benefits.
• Donations – Are your deductions tax deductible? If they’re made to Section 18A organisations they are.
• Section 12J Investment – This is a new one, but any investments into a S12J company are 100% tax deductible.

At SME.TAX we do more than just assist clients with planning for their financial year-end. We are your “one-stop SME shop”, assisting with everything from Accounting, Business Management, BEE, Consulting, Company Registration to Payroll and Mentoring.

For more information, visit our website www.sme.tax or give us a call on +27 012 021 0829