INDIVIDUAL FILING

SARS published the requirements set out in the Income Tax Act section 11(a) read in conjunction with sections 23(b) and 23(m).

HOME OFFICE CLAIMS:

For home office claims, rental income, and additional income to be declared, be so kind to contact us for assistance?

Requirements to be able to claim the Home Office expenses:

• Employees working from home must have a set room regularly and exclusively used for the purpose of trade. Certain expenses incurred in maintaining a home office will be calculated on pro-rata. 

• With a salary/similar remuneration, more than 50% of your duties must be performed mainly in your home office. 

• If the remuneration is commission and more than 50% of those duties must be performed in an office provided by your employer. 

• Home office expenditure referred to in section 23(b) are linked to the premises of the property. Apportionment is important to calculate the allowance. 

• Should you meet these requirements, a percentage of the total square meterage used for Home Office space can be claimed along with the following expenses:

   Rent or interest in bond

   Repairs to the premises

   Rates and taxes

   Water and electricity

   Cleaning

   Internet

   A clear photo of the dedicated room equipped as the office and measurements

   A letter from your employer stating the hours and % you can work from home.

Self-employed; Runs own business; or work as an independent contractor or freelancer.

Please note:

• Additional income earned from rental income of a fixed property. 

• Investment income – interest received, dividends, foreign income or dividends, capital gains (exceeding the exemption threshold)

• Disclose income if your employer is not deducting PAYE. Register as a Provisional taxpayer. 

• Registered companies/Closed Corporations are automatically Provisional taxpayers. 

• If interest income, dividends of rental income are less than R30 000 – exempt from provisional tax. 

• Provisional Tax is not required if the total taxable income is below the threshold for individuals 2026 filing season:

  Under 65 years old: R95,750 per year

  65 to 74 years old: R148,217 per year

  75 years and older: R165,689 per year

SARS has made it easier for you.  Auto-Assessment is different this year.

Tax payers with taxes,  less complicated may get an auto- assessment.  Tax payers with auto-assessments will be notified via a sms.   Log into E-filing or MobiApp.   If you agree with SARS, you do not have to “accept”.

If you disagree with the auto-assessment, choose the Edit option, declare the additional information to SARS and file as a normal  tax return through e-Filing of SARS Mobi App.  It should be done within 40 business days from the date of assessment.   You may be selected for verification or an audit. Make sure you do have all the supporting documents available.

On agreement with the auto-assessment, SARS will not select you for verification or an audit.

Refunds can take approximately 72 hours from the date of your assessment.   SARS should be notified of new banking details in time to have your refunds done successfully.   In case you owe taxes to SARS, do the payments as soon as possible to avoid interest.  The Notices of Assessment, the ITA34 will show the payment due date.

You can request for an extension if you could not submit within 40 days.   Be alert that you do not have outstanding returns of previous years.

As from 1 September 2024, retirement funds will be subject to the new two-pot system which aims to minimise early withdrawals, while retaining the principle of exempting contributions and growth, but taxing withdrawals.

The “retirement pot” cannot be accessed before retirement. The “savings pot” can be accessed with a single taxable withdrawal in any 12 month period, subject to tax at marginal rates.

• One-third of the total contribution goes to the “savings pot” and the balance to the “retirement pot”.
• The fund balance as at 31 August 2024 will remain in the “vested pot”.
• Withdrawals will be subject to tax according to the relevant lump sum table.
• Members may transfer the lesser of 10% of the fund balance or R30 000