By Anton Kriel
South Africans have faced a range of increased costs across most spectrums, from rising fuel prices, a 15% electricity traffic hike, higher municipal services charges and a month-to-month battle with mounting food and transport prices. These cost of living increases have placed consumers under pressure and it is becoming more difficult to save.
With July being savings month and the tax season being officially open, here are a few tips on how to be more tax savvy:
- It is very difficult to save tax after the event, the best you could do is to use the current year’s assessment to see how you can do things better for next tax year. e.g. maximising RAF contributions, consolidating investments, consider preferred share investments for tax-free income, timing the sale of high value assets, etc.
- Double check that third party information issued with your return is accurate – don’t just assume it is
- Don’t fudge your deductions or take chances – they must be based on actual deductible expenses with correct supporting documentation in case SARS asks for it
- Travel claims - be careful of what your logbook reflects vs your car’s service and electronic travel record
- If you are due a refund, make sure your banking details are correct
- Be wise about spending to save tax, especially if you don’t need it – it still costs you 55% more
- Top tip
Anton Kriel is a Tax partner at BDO, South Africa
PERSONAL FINANCE