In the past tax season usually opened on 1 July for individual tax return submissions. As a result of COVID19 SARS has implemented a new strategy to reduce the need for taxpayers to potentially visit a SARS branch. This includes an automated assessment for some taxpayers that will be done in August as well as prepopulating the tax returns of taxpayers with more information (reducing the need for supporting documents).
Taxpayers who qualify for the automated assessment will receive an SMS from SARS in August requesting them to confirm the result of the assessment. It is better to rather review this carefully before accepting the calculation. This system is geared towards less complex tax returns.
What is needed for my tax return?
Although most information is preloaded onto your tax return it is good practice to double check the information SARS has on file. Therefore, compare what SARS has with the relevant certificates received.
For those claiming against a car allowance or company car, you will need a logbook in the prescribed format as well as the vehicle’s purchase invoice. You need to make sure that this year’s opening km reading agrees to last year’s closing reading as reported to SARS.
If you want to claim additional medical expenses you will need the invoice from the doctor/pharmacist, the script number if it is a pharmacy invoice as well as proof of payment. Remember you can only claim the additional medical cost if it was paid before 29 February, even if the invoice is dated before 29 February.
You may need to provide a statement of assets and liabilities to SARS.
If you receive any other income from operating a trade or letting out of property you need to provide the detail of all the income due to you (even if not received yet) as well as all expenses incurred. Remember you need documentary proof of the expenses (invoices) should SARS require it.
Most important if you are due a refund
You need to make sure SARS has your correct banking detail on file. If they pay it into an incorrect bank account, you have no recourse against SARS or the Bank.
What to do next?
Spend up to the end of June getting everything together and rather submit your return early. Remember SARS can apply monthly penalties if your return is overdue and can collect these from your bank account directly.
If you need assistance, contact PPHC Global and rest assured that we’ve got this!