We knew that, twice a year, my mom would abandon cigarettes: at tax time, and on the 31st of December when she would resolve to live clean. It was one of our family traditions.
If you happen to be contributing to a medical aid scheme in South Africa, you will have enjoyed the tax rebate this generates. This is called the Medical Scheme Tax Credit (MTC). It is meant to subsidise and reduce our medical costs.
For instance, for two adults and two minor dependants, this amounts to R1 014 per month or R12 168 per annum. It makes a big difference. Also, since we are subsidised for the portion that falls under Section 6 (b), which protects us when medical costs not covered by your medical aid get out of control, the total refund could be considerably more. Continue reading “The National Health Initiative”
Paying taxes is an activity done by all but enjoyed by no one and it’s therefore no wonder that people are constantly trying to find legal methods to pay less tax.
However, when it comes to saving your hard earned money from the taxman, one really needs to look no further than travel allowances. Many employees use their own personal vehicles to carry out business related tasks on a day-to-day basis and the scarily exciting thing is that it is perfectly legal to claim an allowance on this expense! However, there are some finer details to be processed before one becomes eligible for this tax saving method: Continue reading “Travel Allowance Recipients”
Lately, the South African government has been looking to address the prevalent problem in our society of both individuals and households simply refusing to save a large enough portion of their income. The government’s solution to this problem? New tax free investments made available to all!
Why is Saving Important?
It can be very tempting to go out and spend all your money as soon as you receive it but there is no denying that this strategy will have disastrous consequences in the long run. Continue reading “New Tax Free Investments Announced”
It’s tax time, which means it is also retirement-annuity season. As an investor in a retirement annuity (RA), you’re able to make ad-hoc additional payments into your funds annually, and with the deadline looming the time to top up is now.
The closing date for topping up your RA is 28 February and you should ideally let your financial advisor know a few working days before that date in order to allow for admin processing. Specialising in financial planning services Northwood will ensure that you have the most favourable RA to suit your needs. Continue reading “Deadline for New Retirement Annuity Contributions Looms”
Investing in a retirement annuity fund is not only a fantastic way to ensure your own long term financial future but can also, ultimately, save you money today through the various tax benefits it affords.
On the 28 February of 2015, the deadline for submitting your retirement annuity form in order to get tax benefits passes. This means that, even if you have contributed to your retirement annuity fund, you will be ineligible for the tax benefits available if you do not meet the deadline. Continue reading “Retirement Annuity Tax Benefits? The Deadline Looms”
Why it’s better to start right now
Between the 25th and 27th of February next year, SARS offices around the country will be swamped with business owners and accounting professionals as they brave the long lines to submit their VAT and provisional tax returns.
If you’d like to avoid the stress and frustration of late submissions and last-minute paperwork, here are some things you can do right now to prepare for tax season. Continue reading “Preparing for Tax Season”
A Great Financial Start to 2015
As the first two weeks of December roll by and companies prepare to wrap up business for the year, business owners often find themselves thinking about the year ahead – and one of the best ways to ensure that 2015 is a successful year in business is by scheduling an early planning session in the New Year. Continue reading “New Year Planning Sessions”
In our previous blog post we outlined some of the differences between traditional company tax and the new turnover tax that SARS recently introduced. Now that we’ve covered the basic differences between these two types of tax, let’s get down to the difficult part – choosing which type of tax to register for. Continue reading “Turnover Tax or Company Tax – Which Do I Choose?”
One of the most recent changes to SME taxation in South Africa is the introduction of micro business tax, or “turnover tax” by SARS. This new form of tax applies to smaller SMEs and start-ups, and may be a good option for entrepreneurs, depending on their annual revenue. In this article we take a look at the new microbusiness tax and compare it to traditional business tax. Continue reading “Micro Business vs Company Tax”