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Meet these four requirements and you CAN save on your office security costs

by , 02 November 2016
You probably spend thousands every month on security for your business and your premises.


There's your armed response service monthly fees - R400 (average)
Satellite tracking monthly fees for company cars or delivery vehicles - R250 a month
24/7 security guards R3 500 for one guard. If you want someone protecting your business 24/7 multiply that by 3. You're now looking at R10 500 a month
Guard dogs' food - R150 a month;

Before you know it, you've spent R11 300 a month just on security. That's a massive R135 600 a year.

But did you know you can claim tax deductions for some of these expenses to save your business thousands of rands?

Well you can, but there are certain requirements the expenses MUST meet to qualify.

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There's nothing better than getting money back from SARS...
 

But do you know whether you can claim for:
  • The cost of new laptops for your business?
  • 5% of building costs?
  • Stolen assets?
  • Gifts you give your clients to say thank you for their business?

Lucky for you, neither did 7 743 of our other subscribers...

Click here to find out what the answers are to these questions


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Make sure your business security expenses meet these four requirements, to qualify

1. You must actually incur the expenses.

For example, if you just receive a quote for the installation of a new electrified fence, you can't claim any deductions. It's only when you actually pay for the installation, that you can claim the deduction. 

2. You incur the expenses in the current year of assessment.

This requirement stops you from claiming expenses you incurred years ago.  Example, in January 2015, you bought a guard dog and paid R750 to the vet for vaccinations. You can't claim this expense now in your 2016/2017 tax return. 

Keep reading for the nest two requirements…


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SARS can't risk you getting your hands on it. They'll lose out on millions if you do.
 
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Two more requirements you must meet to qualify for your security deductions
 
3. You incur the expenses in the production of your income.

Let's say you own a flower delivery company and you put a tracker into the delivery vans. That way, you can be sure all the deliveries are made on time, to the right clients. And you can also recover any vans that are stolen or hijacked.
 
Because the tracking is an expense you incur to produce more income, SARS will let you claim it as a deduction (but only if it's NOT of a capital nature, which we'll discuss below).
 
4. The expenses are of a revenue nature - NOT of a capital nature.

If an expense has a revenue nature, it's not a recurring cost that creates a lasting benefit for the business. Example, you hire a bodyguard to protect a hotshot employee who's a target for kidnappers. Because you pay the guard's salary each
month (and his protection doesn't create any other enduring benefits for your business), you can deduct the salary.
 
If an expense has a capital nature, it's paid once off but creates an enduring benefit. Example, you install a new alarm system. You pay once for this installation, but it has enduring benefit because it increases the value of your property and reduces your insurance premiums.

Security expenses are just one of the ways you can claim a deduction on your business expenses. You can also claim on the cost of new laptops for your business, building costs,
stolen assets and gifts you give your clients to say thank you for their business. The Practical Tax Handbook shows how.


 
P.S. Before I go, I just remembered, you can also claim 28% on your bad debt. Here's how.


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