Income Tax Returns – Top 4 Mistakes to Avoid

House of Silk November 23, 2023

Income tax returns are due once again. Yes, time flies when it comes to paying SARS. Indeed, if you are a provisional taxpayer it may feel as if you are constantly preparing tax returns, submitting them, and paying over money due.

Get professional tax help to avoid penalties related to late submissions and the rather uncomfortable feeling of someone watching you because you are committing one of the deadly income tax return sins discussed below.

1.      Not Being Honest About Your Bank Account

You cannot hide bank accounts from SARS. Not truthfully declaring your bank accounts can lead to a hefty administrative penalty that can run into the thousands. It is all fine if you have extra cash on hand, but having to pay R16 000 plus for being dishonest, and doing so on short notice, can be challenging. Always declare all your bank accounts.

2.      Not Declaring Investments

Penalties and more penalties await those who are dishonest with SARS. Not declaring investments on your income tax returns is a mistake you should avoid at all costs. Investment houses declare information about shares, shareholders, and investors to SARS. They certainly are not willing to hide the information to save your pocket. Declare all investments.

3.      Failing to Submit Income Tax Returns When Due

Remember the penalties mentioned earlier? Now imagine how quickly penalties can become mountains of debt if you fail to submit income tax returns for a few years, not to even mention the cost of medication to help you sleep at night. SARS does not take lightly to people who ignore the law. Submit your income tax returns on time, and do so every tax season. Of course, if you make use of our professional services, we remind you when income tax returns are due, and our team ensures the accurate completion and submission of the returns.

The R350 000 threshold for not having to file a tax return is confusing. Rather than guessing that you do not have to file, make sure. There are only a few circumstances in which you do not have to file a return.

4.      Making Tax Calculation Errors

The calculations are complex to say the least. Thresholds change, and so do regulations. Indeed, what was relevant last year may not be the case this year. You focus on work and income generation. As such, it is understandable that you do not have the time and resources to study every bit of legislation pertaining to taxes. Thus, it is easy to make a calculation error. Unfortunately, the error can mean the difference between getting a refund and having to pay extra for the mistake.

What is The Solution?

Make use of our professional assistance in completing and filing your income tax returns. Tax Leaders keep up to date with changes in regulations and thresholds. Additionally, we ensure correct calculations and completion of forms according to SARS requirements, as well as compliance with legislative requirements.

For more information, contact our expert tax specialists team at Tax Leaders – [email protected] or visit our website on www.taxleaders.net

Accounting Assistance – 2 Reasons Why You Need Monthly Accounting Assistance

House of Silk September 3, 2023

Accounting assistance you can rely on.

Are you a start-up juggling too many hats at once? Nowadays, running any type of business is tough, especially if you don’t have your finances in order.

In fact, over the years, statistics have shown that many start-ups fail within the first three years, with poor financial management being the leading cause. Crucial to the survival of any business – without proper financial management, a new business can run the risk of falling into serious cash flow problems.

Still, there are many start-ups that believe that outsourcing their monthly Accounting Services is just a waste of time and insist on doing their own books themselves. However, what many don’t realize is that they could very well be doing their business more harm than good.

If you’re on the fence – here are 2 reasons why your start-up needs monthly accounting assistance, right away.

#1 ACCOUNTANTS MAKE BUSINESS GROWTH EASIER

From setting up shop, employing staff, marketing and reaching sales goals, to finances and accounting. You’re going to have more responsibilities than you can handle.

Just because you’re an entrepreneur, it doesn’t make you a numbers person.

Invaluable allies for any new businesses, no matter what type of business you’re running, accountants are necessary to help you grow your money. Offering a clearer perspective based on profit and loss reports, accountants help you look at the big picture and can tell you what services or products you should continue, decrease or discontinue. Additionally, keeping a firm eye on money coming in and money going out – accountants can pick-up and solve problems that you never even knew you had. No other business relationship has such potential to pay off than an accountant.

#2 AVOID COSTLY PENALTIES WITH TAX AND SARS COMPLIANCE

Considered as the basic ingredient for the success of any business, every new start-up is confronted with the dreaded annoyance of filing tax returns each year.

Not only must numbers be precise and accurate. However, paperwork and formalities must be set up correctly. Otherwise, your business will be in the “hot seat” with SARS.

Accountants have intentions to keep expenses low and help in avoiding problems with SARS. They assist with the completion of tax returns, VAT, UIF and PAYE, as well as prepare pay slips.

When you hire an accountant, they stay up-to-date with the latest tax legislation changes. Additionally, they act quickly and efficiently with compliance guidance to their client’s specific financial requirements.

Outsourcing an accountant to do your monthly accounting is a no brainer. You’re getting access to years of financial experience. Additionally, your taxes are taken care of.

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