SARS 2008

[adamr]

if i am claiming std 32 000km, what is the business and private use they assume on the return ... do i need to fill the private and business kms out even though i have highlighted "I dont have a log book" ????

I am contributing to my mums and dad med aid ... should i include this on the statement? it does not fall under my work med aid scheme and somehting i am doing externally with discovery? do i need to attach any documents in this regard?

 

[Barefoot Billionaire]

Travel allowance and your tax return

Hi, for 2007/08 tax year: If you choose 'no logbook' option, SARS will automatically assume that the first 18 000 km was for private use. The rest you can claim as business, but is capped at 14 000km. Yes, you have to complete these figures on the form anyway.


The Barefoot Billionaire lives @
www.morethanmoney.co.za

 

[Barefoot Billionaire]

Only if your parents are viewed by SARS as your dependants (which is rare), can you deduct the contributions to their medical aid. Would be best to ask SARS's guidance on this (they've just issued a new tax guide relating to medical expenses and tax practitioners are not 100% sure how to interpret all the new clauses).

 

[HavocXphere]

if i am claiming std 32 000km, what is the business and private use they assume on the return ... do i need to fill the private and business kms out even though i have highlighted "I dont have a log book" ????

The first 18k is deemed private, after that business up to 32km or actual KM on odometer...whichever is lower. You cannot just claim 32k-18k and ignore actual KM traveled.

You will need to know the total actual KM traveled though...you need it to calculate the deemed rate / KM. The fixed portion is divided by the total actual KM per odometer.

Not sure what happens if you didn't record the odometer readings...I'm guessing your out of luck in that case.

I am contributing to my mums and dad med aid ... should i include this on the statement?

No. You can't claim anything for them since they are not dependents. (Unless they are <26y, full time student and unmarried.)

 

[adamr]

thanks guys. Ok noted on the med aid! With the car I noticed if you choose no log book option, having to fill in the business and private kms is not mandatory. Busy doing this on e-filing. My irp5 details were automatically filled in. What else should I look out for? 1st time I am doing my tax myself.

Ps: after hitting the tax calculator option it shows I owe R1500 ... Usuaaly always got back around R9k without claiming anything excessive

 

[Barefoot Billionaire]

Do you have any income protection policy contributions or perhaps contributions to charities registered under section 18A? You can deduct those as well. (I'm assuming you've already deducted any allowable contributions to a private RA, which won't be much if you already have an employer pension fund.)

 

[Turiko]

I've had an income protection policy since 2005. I've never deducted those as there is no point in doing so.

 

[Lord Anubis]

be careful...be honest...I personally know of one lady who fibbed on her km's...she dodged the tax auditor who wanted to come confirm her story (yes they do audit) and she was stopped at a roadblock outside Eastgate, arrested for fraud on (a Thursday early evening) and spent the friday and a non lubricated weekend of hell in lockup in Germiston police station (this was until she could get bail, recieve medical attention and be released on the Monday evening). She ended up with a fine and suspended sentence and emotional scars for life. All I can say is be truthful

 

[Barefoot Billionaire]

Hi Turiko, why do you say it's pointless to claim income protection policy (IPP) contributions? Do you have an IPP or PPS?

 

[Barefoot Billionaire]

I'm with BTech on the honesty bit. But just a comment on your friend's terrible experience: Resist arrest without a warrant at all cost. And have your lawyer's number handy.

 

[HavocXphere]

Couple of things I forgot to mention:
1) The calc is different if the car is a company car. I think the deemed KM option is not available then
2) You must be getting a travel allowance
3) This is not a deduction, its part of the fringe benefit calc. If you earn a salary and you put this under deductions then you'll run into trouble.
4) The answer of the calc is limited to the travel allowance
5) Reimbursive travel allowances work differently

 

[piranha786]

I need some info on the reimbursive travel allowance, on IRP 5 code 3702 R15000
I do not have a travel allowance (3701)

how is the tax calculated?
car value R180 000, total km travelled for the year 40 000, no logbook kept.
thx

Also assuming avg km per year is 40 000 km, what is the best Allowance amount to use to minimize tax.