Tips For Submitting Your Tax Returns
Here’s a list of the most common mistakes people make when submitting their tax returns and how to avoid them:
• Some people often forget to check the arithmetic on their returns – they simply change numbers or leave off zeros. If you have miscalculated, it will slow things down. It’s fine if you owe the Receiver money, but if they owe you a refund it could be delayed.
• People don’t write clearly and that causes unnecessary delays. Make certain your handwriting is legible and that you clearly indicate your ID number on the form.
• Many handicapped individuals and pensioners forget (or don’t realise) that they may be able to claim additional deductions such as medical bills. A tax consultant will be able to tell you if you qualify.
• Don’t miss deadlines. You can apply for an extension for up to six months without having to pay a penalty. If you do not apply for an extension, they’ll charge you penalty.
• If you regularly get large refunds, you’re having too much money withheld and, in effect, giving and interest-free loan to SARS. Changing the number of allowances you claim on a form will increase your take-home pay.
• Keep copies of all documents you send to SARS. And remember to always use certified mail or hand-deliver all important correspondence to SARS. Don’t forget to keep your records in good shape so that you can find answers to any questions about your return.
• Many headaches can be avoided if you use a good tax consultant. The R500 you may have to pay them is well worth it. Self-employed people should not even think about doing it alone. The Receiver makes mistakes, too, and a consultant will often sport errors that slip by his clients.
