What documentation and logging will I need to do for Tax year 2019?
As the new tax season has just begun, in the interests of always trying to keep our loyal clients well informed, we are doing a couple of articles on this. In our last article we examined whether you would still need to submit a tax return with the recently announced new tax threshold. The conclusion was that you would, unless you have only one employer and are receiving just one IRP5. This means that you have no additional monthly income.
We also looked at many good reasons why it was a good idea to keep submitting a tax return anyway. If we convinced you, or if you are not exempt and will still be submitting a return, you might well be asking “What documentation and logging will I need to do for Tax year 2019?”
Well, there are a number of supporting documents required when submitting a return, but it differs for different individuals or businesses. A professional Accounting firm can give you advice regarding which documentation is applicable to you…so what are the standard documents required?
- IRP5’s for income from employment that have been received. This would be salaries, bonuses, overtime, fringe benefits that you could be taxed on, certain allowances and lump sum additional benefits. Think of anywhere that you earned income
- Director’s fees, if it is an additional benefit
- Income or the profits earned from being a beneficiary of a trust
- Rental income and expenses occurred in the creation of this income
- Pension funds and income from Retirement Annuities
- Investment income. Provide IT 3 certificates to show interest and foreign dividends
- Donations paid to registered Public benefit organisations, together with a Section 18A certificate
- Capital gains earned – This will entail the purchase price, selling price and major alterations made to the asset.
- Medical Aid certificates and any medical expenses that you paid out of pocket
- A summary of all other income that might have been received, like royalties earned, freelance work, consulting etc. together with any relevant expenses that you may have incurred in the creation of these income.
Keep and submit all appropriate invoices and slips that prove any expenditure that is claimed.
What do I need to log?
This usually just appertains to a travel allowance, where you’ll need to have kept a log book. A travel allowance log book should show the following entries:
- Opening and closing kilometres for every journey
- Business kilometres
- Private kilometres – and remember that travel from home to work and back home is considered to be private kilometres
- The reasons for travel and the destinations travelled to whenever business kilometres have been logged.
The Log book needs to show the make, model, year of manufacture, cost and registration number of your car (or whatever vehicle it is) and also provide your Accountant with the purchase contract of when the vehicle was purchased – or the tax invoice.
Hire the professionals
We hope this has been helpful to you, but remember there are many reasons to use professional tax specialists like Ratio Accounting to handle your tax matters for you. Not the least of which is to ensure that all the right logging is done and documentation kept throughout the year.
Come tax season, as we are experiencing now, you can have the peace of mind of knowing that your return will be expertly handled and submitted with all the right accompanying documentation. Contact us to find out more and don’t leave it too late to start letting us ensure you have the best possible tax return outcome!