Tax Year Drawing To A Close

The end of February 2023 sees the tax year drawing to a close…

Tax efficiency is a key aspect of a healthy financial plan, so this is the perfect time to ensure all of your tax affairs, and tax details, are up to date.

Tax has a significant impact on your investment return. it’s important to understand the tax advantages on offer and to make strategic choices.

Did you know that by making sure your tax affairs are in order, considering the tax implications of your investment decisions, and maximising the tax benefits on offer, you can improve your financial flexibility?

Here are Morar Incorporated’s tips:

1.  If you are unsure about any aspect of your taxes, don’t bury your head in the sand. Seek professional advice. A qualified accounting firm can help you to navigate the complexities of the tax system and ensure you’re taking full advantage of all the benefits available to you.

2.  Diarise important dates on the tax calendar – 23 January 2023 was the deadline for provisional taxpayers to submit their tax returns. If you missed this deadline, submit your return as soon as possible to avoid penalties.

28 February is the end of the 2023 tax year. This is your deadline for maximising the tax benefits made available by the government to encourage us to save.

July 2023 (the exact date is to be confirmed by SARS) is when the tax reporting season opens for non-provisional taxpayers.

3.  Gather and collate all the necessary documentation. Make sure you have all the needed documents including receipts for any deductions you plan to claim. This will make the process of filing your taxes smoother and less stressful.

4.  Keep track of your expenses, whether you’re self-employed or have a small business, it’s important to keep track of all your expenses. This will make it easier for you to claim deductions and ensure you don’t miss out on any potential tax benefits.

5.  Take advantage of tax-deductible expenses, many expenses can be deducted from your taxable income, such as medical expenses, home office expenses, and charitable donations. Make sure you take advantage of all the deductions you’re eligible for.

6.  Consider tax-free savings: A tax-free savings account allows you to save money without paying tax on the interest earned. The annual limit for tax-free savings is R36,000, which can make a big difference when it comes to your tax bill.

7.  Plan for retirement: Retirement planning is important for your financial future, and there are several tax benefits available for those saving for retirement. Consider contributing to a retirement annuity or pension fund to reduce your tax liability and plan for your future.