Tax Benefits

Don’t Miss Out On Your Tax Benefits

It is not only the government that benefits from your tax payments, you can benefit too.

There is a light at the end of the tunnel; you just need to know how to find it. If you allow us to guide you, we’ll direct you through various tax benefit channels.

By reading the top 10 tax perks and tips listed and explained in this article, you’ll learn how you can benefit from tax burdens.

Tax Benefit: Company car vs. travel allowance

Choosing between a company car and travel allowance is a personal decision which is very much determined by circumstances. But here is some advice which will make this important decision a little bit easier. If you won’t be travelling that much a company car is more tax efficient. But keep in mind that when you are no longer employed by the company the car doesn’t belong to you.

If you will be travelling 27 000 km or more per year, travel allowance is more beneficial.

Tax Benefit: Car Costs

If you want to determine the value of your car, especially if it is an older or already paid for car, it is best to use SARS’s deemed cost instead of the actual cost.

Tax Benefit: Car Calculations

If your salary package includes a car allowance, it is important to know that there are tax advantages associated with various car finance options. On an instalment sale agreement, you can claim finance charges as you incur them.

The car’s cash cost will be depreciated over 5 years and the write-offs proportionate to your business mileage for that specific tax year. If the finance option is a lease contract, you can claim the business travel portion of the actual instalments against the car allowance you receive.

When doing your annual tax return and apportioning the cost of your car to business travel, either use the actual costs or the costs set out in SARS’ table.

Tax Benefit: Occasional Services

Quite a few companies provide their employees with a tax service of R500 each year, to be utilised for the services of a tax consultant or financial advisor. You don’t get taxed for it and the company receives a tax deduction for the cost.

Tax Benefit: Cell phones

If your salary includes a cell phone benefit you get taxed for the full amount. But you can claim a tax deduction for the cost of business calls on your annual tax return.

Tax Benefit: Facilities at work

Some companies, especially the larger ones, provide their employees value-adding facilities at work like a gym, crèche etc. These facilities are tax-free.

Tax Benefit: Computer allowance

There are some organisations that provide their employees a monthly allowance to be used for purchasing computer equipment for home use. This allowance is taxed the same as a cash salary, but employees can claim depreciation of one third of the cost in their annual tax return.

For further enquiries regarding tax benefits contact us today!

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