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Make your tax return work for you! Six tax savings tips that will benefit you and your business!

by , 16 July 2015
As a business owner you have to stay on top of your finances by constantly making sure you're sticking to your budget and keeping an eye on your daily expenses.

So in order for your business to thrive and be successful, you need to cut costs and save where possible!

But are you doing everything you can to save on tax?

You and other small business owners might not know this but the one area you can save on is your tax return.

I'll show you six easy tax savings tips that will benefit you and your business!

Do you know:

* If you have to pay Vat on the fringe benefit of a car?
* If you can claim input tax on motor expenses?
* What's the correct way to calculate the fringe benefit for a company car?
* How to calculate the tax if your Director has a travel allowance and a petrol card?

Click here to learn how to calculate the fringe benefit for your company cars without making a single mistake..


1. Diarise those dates!

This might seem obvious, yet it's something people often forget to do. Knowing your exact deadlines for filing your tax returns means you can have all your documents in order before the time.

So diarise those dates to avoid any last minute scramble and possible penalties if your submission is late.

Also, I recommend you file your tax return yourself so you can deal with any problems or issues with the SARS representative.

2. Define your home office

Having an office space in your house is one of the easiest ways to get a tax break. Not only does having a home office give you an affordable cut on your tax return, but you have a place to do your work in the comfort of your home.

But it's not as simple as claiming the space in your house because you have a computer in it. 

You must make sure you have a dedicated office space in your house. There needs to be a clear line between your workspace and the rest of your home.

Also, you must use the laptop or computer in your office solely for business related work. You can't use this for personal use or share it with the rest of your family.

3. Hang on to those office supplies receipts

You can deduct the business supplies you buy. So make sure you keep a list and the receipts. The office supplies offset your taxable business income.

So you can claim on supplies like printers, printer cartridges, computer equipment, and office machinery. As long as they're related to the functionality and running of your business.

4. Travel

The general rule is that if you spend money to generate income, then that's a business expense.

You can claim on fuel, flights and accommodation. So be sure to keep record of your travel logs and fuel costs. Use an electronic trip logger which uses GPS coordinates, to automatically record your entire trip.


Taxing employees on their use of company cars isn't as simple as you might think.

Travel expense claims and deductions are one of the most common triggers for a SARS audit.

In fact, if you get it wrong you'll face penalties of up to 200% from SARS. And to top it off your employees will either pay too much tax or not enough. Either way, the admin to sort it out is just not worth your time.

Click here to read more on your guide to taxing company cars and travel allowances.


5. Meal and entertainments

When you take clients or potential clients out for coffee or a meal, this is a business expense. Even snacks during a meeting with colleagues can qualify as a business entertainment expense and you can deduct these costs.

6. Educational costs

You can deduct employee's educational expenses if the course or conference will improve their skills and performance levels, as well as, the transportation to and from the course/conference.

You can even write off some of your own educational expenses.

P.S. Save R26 983 by keeping an accurate logbook. Maintaining an accurate logbook is a tedious affair but the benefit of additional tax savings may make it worthwhile. Click here to find out more…

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