Personal Tax Returns

by Shantel Nel

Personal tax

Reasons why your personal tax needs to be up to date and done correctly

Submissions for the 2019 financial period for personal tax, opens 1 July 2019 on e-filing.

Completing and submitting tax returns are dealt with a great deal of uncertainty, and most people experience this as a frightening journey.

Any discrepancies on a tax return can lead to tax implications in your personal name as well as unnecessary payments to SARS.

Late submissions can cause penalty interest raised on the original payable amount, which can lead to quite a substantial amount at the end of the day.

To ensure that your return is submitted correctly, provide your accountant with the correct information and documents.

Herewith a short list of the documents that need to be provided:

  • Income earned (salary, etc.)
  • Medical Aid Contributions and additional expenses not covered by the Medical Aid
  • Retirement Annuity Contributions
  • Any other income earned during the year (Interest, Dividends, Commission and Rental income. If you have a usufruct property in the trust, and the trust does not declare the income and expenses, make sure that the income and expenses are declared as well).
  • Travel Logbook for travel allowance if applicable.
  • If you have trusts with Destinata Accounting, make sure that your information is submitted to your bookkeeper in time to finalize the annual financial statements prior to the personal tax deadline (any Section 7C interest that was not donated to the trust, and has to be declared in your personal name, must be added to your personal tax).

Make sure that supporting documents are available should the return be audited.

Business accounting

It is important to keep your company's annual financial statements up to date. The annual returns need to be submitted to CIPC, failing to submit these returns, can lead to the deregistration of your company.

The PAYE calculations need to be done correctly. Any discrepancies can cause an individual to pay additional tax payments.

Failing to submit your VAT on time will lead to added interest and penalties. To avoid any audits or red flags at SARS, make sure that the submissions are done on time. Each and every period needs to be submitted, even if there is only income and no expenses.

An important aspect which is normally overlooked, is the company debtors and creditors, also refer to trade and other payables or receivables. Trade debtors are assets for the company, meaning that clients purchase on credit with the company (credit sales) which can be services or goods. These clients then owe the company the amount of debt at the end of each month.

Your small business can qualify for a tax reduction rate of normal income tax. There are certain criteria that must be met. Contact us if you need assistance to see if you can qualify as a small business.

We can assist with all your company needs including annual financial statements, tax returns, PAYE and VAT, to name but a few.

Please contact to be put in touch with a Wealth Masters approved accountant.