Wednesday, 02 December 2020

THERE IS A SCIENCE FOR YOUR TAX SUCCESS: Get to know the art of filing your tax return before the season closes today

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Head of Tax at TaxTim explains the art and science of filing your tax return before the season closes on 16 November.

The 2020 tax season left a lot of taxpayers in a spin, when the South African Revenue Service (SARS) decided to make tax season even shorter for salaried employees, confined between 1 August and 16 November 2020.The journey to success requires us to see the upside of a world turned upside – down. We have a global pandemic on our hands, a shrinking economy and less money to spend on life’s luxuries.

This financial uncertainty is all the more reason to find a fresh perspective to your finances, and file your tax return on time, to reap the rewards of a possible tax refund. According to Nicci Courtney Clarke, Head of Tax at digital tax filing platform TaxTim says, “We have never had a busier tax season. With the consumer confusion brought on by the introduction of SARS auto assessments combined with the shortened tax season, there is much room for error. But if you put in the right information, you are most likely due a tax refund,” says Clarke.

What is a tax refund exactly? Clarke explains it as a refund from the government for those who have paid too much tax over the year. While that may sound like an unusual turn of phrase in the halls of our tax collectors, the science behind it is simple.Get to know the four main reasons why taxpayers could pay too much tax in a given tax year. Clarke explains:

1. If you worked for less than a year in the tax year in question
SARS calculates the tax you owe according to a 12-month annualised estimate. So, if you were unemployed for any portion of that tax year, you are likely to be owed a tax refund.

2. If you contribute to a retirement annuity
Our government encourages people to contribute to the national economy through investments such as retirement annuities. If you have one, you will need to make sure your contribution is listed on your tax profile and you will likely get tax back.

3. If you contribute to a medical aid
Many people often assume that they are due a tax refund as they are part of a medical aid. If you contribute to a medical aid through your employer, your contributions are already deducted from your salary and you are unlikely owed money by SARS.If you are paying for your medical aid on your own, then you are definitely due a refund and should ensure your contribution is listed on your tax profile. You should receive an email from your medical aid with all the contribution information you need in the form of a tax certificate.

4. If you donated to charity
Another great way of ensuring a tax refund is to make annual contributions to registered public benefit organisations. If you do this, you will no doubt receive a tax certificate to help you fill in the right information.

It’s time to get to know the science to filing successfully with Tax Tim.

Remember, SARS is unlikely to hold your hand. You may need a knowledgeable partner to give you practical advice on your journey to success. Clarke says this is exactly why the TaxTim platform was invented.Owned by Financial Services Momentum Metropolitan Holdings, TaxTim is an online platform that simplifies tax language and allows you to file your taxes successfully in 12 minutes on average.

With over 200 000 users and over 15 000 tax returns filed every year, Clarke says 79% of users receive a pay-out from SARS. “It pays to have the right partner to enable your financial success. The hassle of doing your tax returns manually no longer needs to become a barrier to your success.”What’s more, Clarke adds that Momentum customers get to use TaxTim for free and Multiply members earn up to 40 points whenever they do so.As the 2020 tax season ends, you may need to look at your money from different angles. Visit TaxTim to accelerate your journey to success.

Alternatively, you can visit https://www.sarsefiling.co.za/ and successfully file your tax returns from here.