Maximise Your Remuneration Planning and Save Tax | MD’s Top Tax Savings Tips ahead of the Budget on 21st February 2024
Maximise Your Remuneration Planning and Save Tax
1. Maximise your company car or travel allowance with a detailed logbook:
If you have received a travel allowance or have driven a company car during the 2024 tax year, you need to record your mileage reading as at 29th February 2024.
It is compulsory for taxpayers who receive a travel allowance (or who drive company cars) and who wish to claim their business mileage deduction, to keep a logbook of their business mileage.
The daily logbook entry should include:
- The date
- Odometer reading for business and private travel
- Purpose of the trip/client’s name
- Opening and closing odometer readings for each tax year (and preferably per day) MUST be noted
SARS has become very strict about logbooks and the required layout. If you do not comply you could forfeit the benefit of these allowances and owe money to SARS on assessment.
2. Medical aid and deductions:
Expenses that were incurred and paid for directly by you (out-of-pocket expenses) can also be submitted to SARS, provided the actual slips and proof of payment accompany the tax return.
SARS will disallow claims not substantiated with the required proof.
Contact us urgently should any of your children require additional or specialised medical care, whether temporary or permanent in nature. You could be benefitting from additional tax relief.
3. Retirement Planning:
Retirement Annuity Fund Contributions should be maximised – all pension, retirement annuity funds and provident funds are limited to 27.5% of all taxable income.
- The contribution deduction will be capped at R350 000 per tax year.
Maximise your retirement savings now and let SARS fund your retirement from pre-tax investments – especially ahead of the introduction of the new 2-pot retirement system to come into effect on 1st September 2024 when any new contributions will be subject to more onerous taxing rules and limitations!
4. Outsourced payroll services:
With the ongoing changes in tax legislation and enhanced scrutiny by SARS, we can save you the administration headache of compliance by reducing your risk of payroll validations.
You have already seen how important employee payroll compliance was during the TERS relief process!
Our extensive experience in outsourced payroll services ensures that we work with you to maximise your tax and payroll efficiencies and ensure that all your compliance requirements have been met.
Contact us now before we roll over into another tax year.
5. Changing lives – education bursaries for your employees:
The cost of education is high, it is also the greatest gift one can give. Help relieve some of the financial stress of your employees – with education bursaries for them or their family members, you can make a real difference and achieve tax savings.
Certain requirements and conditions apply (new regulation stipulates that there should be no element of salary sacrifice involved where family members)
Contact us to see how you can assist your employees.
The above is all part of extremely complex legislation, which is continuously evolving and subject to many rules. We would strongly urge you to talk to Alexis, Dave, Juanita, Fatima, or Danie before you take any action.