New tax year checklist

In this series of articles, Cameron Kotze – the Tax Partner at Ernst and Young – discusses some topical tax issues for our readers.

THE new tax year (ending February 28 2009) started on Saturday. Although the end of the new tax year is still far away there are a few things that you may as well do to ensure you start the year off in the right manner.Failing to plan is planning to fail and there is nothing more frustrating than searching for papers that you know you have put somewhere but cannot find because your personal filing system is in a mess.If you are one of those individuals that are less organised than others (remember how you cursed yourself the last time you had to file your tax return because you could not find your tax certificate or other documentary proof) I suggest you find an old shoe box or envelope and put any document that you get during the course of the tax year in it for later use.Documents include petrol slips, entertainment slips or any other proof of expenditure relating to an allowance that you receive as part of your remuneration package.You will be amazed how much easier it will be to complete your tax return next year if you make a habit of “filing” your slips in the box or envelope and you do not have to go looking for your documents.You should have recorded your vehicle’s odometer reading on Saturday morning before you left home if you receive a travel allowance as part of your remuneration.This reading is important for purposes of completing Schedule 19 in the tax return because you have to disclose the kilometres at the start and end of each tax year to determine how many kilometres you travelled during the tax year.You should be completing your logbook on a regular basis to ensure you are in position to complete Schedule 19 of the tax return with relative ease.If you receive an entertainment allowance as part of your remuneration package, you should be recording the names of the people you entertained during the year as part of your proof of the expenditure that have been incurred.As part of your ‘filing’ system I suggest you write a name (or all the names for that matter) on the slip before putting in the box or envelope for later reference if required.For those who are not aware, you can now contribute N$40 000 to an approved retirement annuity fund (including your contribution at work as part of a group retirement scheme) or dependent educational policy and get a tax deduction for the contribution.You can increase your contributions to the tax-deductible limit and the sooner you can increase the contribution the better for the monthly cash flow.Remember to keep the proof of this contribution as well when it arrives in the post in the next few months because you have to submit it with your tax return.The same good habit in respect of collecting and ‘filing’ proof of expenditure applies for any other allowance that you receive as part of your remuneration package.We all have to complete a tax return and the unpleasant feeling associated with the exercise can be significantly reduced if you have all the paperwork at hand at the time of completing the return.The other bit of advice you should take to heart is to start with the completion of the return long before it is due.Most of us have a 30 June deadline.The return arrives in the post some time in April – rather start shortly after you receive it than in the last week in June.You will be amazed how more pleasant the completion exercise will be if you leave yourself ample time to complete the return.* Should readers have queries, they are invited to send them to cameron.kotze@za.ey.com.Although the end of the new tax year is still far away there are a few things that you may as well do to ensure you start the year off in the right manner.Failing to plan is planning to fail and there is nothing more frustrating than searching for papers that you know you have put somewhere but cannot find because your personal filing system is in a mess.If you are one of those individuals that are less organised than others (remember how you cursed yourself the last time you had to file your tax return because you could not find your tax certificate or other documentary proof) I suggest you find an old shoe box or envelope and put any document that you get during the course of the tax year in it for later use.Documents include petrol slips, entertainment slips or any other proof of expenditure relating to an allowance that you receive as part of your remuneration package.You will be amazed how much easier it will be to complete your tax return next year if you make a habit of “filing” your slips in the box or envelope and you do not have to go looking for your documents.You should have recorded your vehicle’s odometer reading on Saturday morning before you left home if you receive a travel allowance as part of your remuneration.This reading is important for purposes of completing Schedule 19 in the tax return because you have to disclose the kilometres at the start and end of each tax year to determine how many kilometres you travelled during the tax year.You should be completing your logbook on a regular basis to ensure you are in position to complete Schedule 19 of the tax return with relative ease.If you receive an entertainment allowance as part of your remuneration package, you should be recording the names of the people you entertained during the year as part of your proof of the expenditure that have been incurred.As part of your ‘filing’ system I suggest you write a name (or all the names for that matter) on the slip before putting in the box or envelope for later reference if required.For those who are not aware, you can now contribute N$40 000 to an approved retirement annuity fund (including your contribution at work as part of a group retirement scheme) or dependent educational policy and get a tax deduction for the contribution.You can increase your contributions to the tax-deductible limit and the sooner you can increase the contribution the better for the monthly cash flow.Remember to keep the proof of this contribution as well when it arrives in the post in the next few months because you have to submit it with your tax return.The same good habit in respect of collecting and ‘filing’ proof of expenditure applies for any other allowance that you receive as part of your remuneration package.We all have to complete a tax return and the unpleasant feeling associated with the exercise can be significantly reduced if you have all the paperwork at hand at the time of completing the return.The other bit of advice you should take to heart is to start with the completion of the return long before it is due.Most of us have a 30 June deadline. The return arrives in the post some time in April – rather start shortly after you receive it than in the last week in June.You will be amazed how more pleasant the completion exercise will be if you leave yourself ample time to complete the return.* Should readers have queries, they are invited to send them to cameron.kotze@za.ey.com.