FRIENDLY REMINDER FOR SOUTH AFRICAN TAXPAYERS
Article by: Fourways Accountant: Annja Louca
As the start of a new tax year approaches, it’s time to shift our focus towards effective tax planning and ensuring a smooth filing process when the time comes. For South African taxpayers, this means being proactive about retirement annuity contributions and keeping track of important documents as well as remembering to track your travel if you receive a travel allowance.
With filing season typically kicking off in July, now is the perfect time to get organised and stay ahead of the game.
Maximising Your Retirement Annuity Contributions
One of the most effective tax planning tools at your disposal is your retirement annuity (RA). Contributing to your RA not only secures your financial future but also offers significant tax benefits. As we step into the 2024/2025 tax year, it’s crucial to consider making the most of your RA contributions.
Remember, every rand you invest in your RA is deducted from your taxable income, reducing your overall tax liability.
This means more money in your pocket and a brighter retirement future. Take the time to review your finances and assess how much you can contribute to your RA this year. Not only will you be investing in your future, but you’ll also be improving your tax situation.
The two-pot retirement system will come into force from the 1st of Sep 2024 but more on that later.
Good book to read – Psychology of money by Morgan Housel.
Track Your Travel Miles
In addition to retirement annuities, another aspect of tax planning which is often overlooked is keeping track of your travel miles.
Whether you’re self-employed or have a job that requires regular travel, these miles can translate into significant tax deductions. From business-related trips to medical appointments, every mile travelled for work purposes counts.
Attached here is a spreadsheet to help you keep track of your travel miles throughout the year (don’t say we’re not good to you!).
By diligently recording your mileage, you can accurately claim deductions when filing your taxes. Remember, every deduction adds up and can lead to substantial savings come tax time.
Preparing for Filing Season
While the tax filing season for 2024 has not yet been announced by the South African Revenue Service (SARS), it’s never too early to start preparing. By taking a few simple steps now, you can streamline the filing process and minimise stress when the time comes.
Start by creating a designated space to store all your tax-related documents.
From medical aid certificates to IRP5s, keeping everything organised will make it easier to find what you need when it’s time to file. Whether it’s a physical folder or a digital folder on your computer, choose the storage method that works best for you.
As we await further details on filing dates from SARS, rest assured that we will keep you updated every step of the way. In the meantime, use this time wisely to get organised, maximise your tax deductions, and set yourself up for a successful tax season ahead.
Effective tax planning is key to making the most of your finances and securing your future. By being prepared and staying informed, you can make the most of your tax return and achieve your financial goals.
Here’s to a successful and stress-free tax season ahead!
Disclaimer: This blog post is intended for informational purposes only and should not be construed as financial or tax advice. Please consult with a qualified tax professional for personalised guidance.
For more information, please visit our website anlo.co.za or give us a call on 0116581324
