As we dive into July, many of us feel the familiar pang of anxiety that accompanies tax season. In our latest episode, we tackle the ins and outs of tax filing. Joined by tax expert
Andre Bothma, we explore why tax can feel overwhelming and how to navigate the process with confidence.
One of the key topics discussed is the concept of auto assessments introduced by SARS (South African Revenue Service). If you're employed and earning an income, you may receive an auto-assessment, a pre-filled tax return that simplifies the filing process. However, as Andre points out, just because you receive one doesn't mean you should trust it blindly. It is essential to review the details, as mistakes can lead to missed deductions or incorrect refunds.
For students and freelancers, the conversation shifts to the importance of filing even if your income is small. Many young people, especially those working in creative fields or part-time jobs, may not realise that they are required to file a return, particularly if tax has been deducted from their earnings. Filing a return can lead to a refund, making it a crucial step in managing your finances.
Throughout the episode, we also discuss the significance of understanding your status as a provisional taxpayer. This designation applies to those earning income without pay-as-you-earn deductions, such as rental income or freelance work. Andre emphasises the importance of being aware of deadlines and the potential penalties for late submissions, which can add unnecessary stress to an already daunting process.
Moreover, we delve into the various deductions available to individuals, from retirement annuities to business expenses. Understanding what you can claim is vital in reducing your taxable income and ensuring compliance with tax laws.
As we wrap up the episode, Andre provides practical advice on engaging with SARS and familiarising yourself with the e-filing system. He reassures listeners that while tax season can be intimidating, with the right knowledge and support, it can become a manageable task.
If you’re looking to take control of your financial future, this episode is a must-listen. Tune in to gain insights that will empower you to tackle tax season head-on and alleviate some of the anxiety surrounding personal finance.