July officially marks the beginning of the tax season. Have you been hearing everything tax from your colleagues, friends and family but still do not know how the whole procedure works? We share quick tips to help you during this tax season.
DON’T PROCRASTINATE
A great deal of the time you would leave your tax returns for the last minute. Do not delay. If you have registered for tax do it now and start submitting you tax returns. The longer you wait, the higher the chances of getting penalised.
BE ORGANISED
Tax can be gruesome if you do not have your ducks in a row. Prior to the tax season make sure that all your financial paper work is in order. Medical Aid, property documents, payment documents from your employer or other earnings, logbook and other relevant paper work that may be useful when you are being audited.
PAY UP
Most people avoid taxing because they fear the idea of having to pay the money they owe. Do not be like everyone else who thinks that running away from the problem will make you feel better. Once you have filled in the required forms make sure that you pay off anything that you owe. Being behind on your payments could result to major penalties in the long run.
THE FINANCIAL ADVISER
For a lot of first time tax payers, doing tax returns can be confusing and unbearable, then it may be best to get a financial adviser or accountant to help. If you can’t afford one, the simplest way would be to do it on your own through e-Filing, of which you would need to register for first, once you have done that then it will be easier for you to do your tax returns and avoid penalties in the future.
THE RIPPLE EFFECT
Once you have filed all the documents and have your ducks in a row, the reward can be quite fulfilling. You will not only have a better idea of how your money is coming in or going out, which could perhaps give you an idea of how you can save money in the future. This could then help you figure out how to use the money you earn wisely. In the long run you would independently know how to manage your finance a hundred times better
Read our August issue for full facts about tax.