1. Are you claiming disability tax relief?
Based on the latest SARS statistics, 52 853 is the number of people declaring that there is a disability in their immediate family. This includes all mental, hearing, visual, communication, intellectual and physical disabilities. You must agree that this is a very low figure considering the prevalence of disability in our country. This means that there are many qualifying people who are not receiving tax relief in respect of the expenses that they are incurring in consequence of their or their dependant’s disability. Are you one of them?
2. Are you claiming correctly?
There are certain expenses that you paid in consequence of your or your dependant’s disability that can be taken into account when claiming disability tax relief. People often fail to include all of the expenses that they are entitled to claim and they miss out on much needed relief. On the other hand, some people claim non-qualifying expenses or they do not apply the correct limitations to allowable expenses; this can result in SARS not only correcting the mistake, but also imposing penalties for overstating the claim. It is important to have peace of mind that you are claiming all of your allowable expenses, that the correct limitations have been applied and that you are not claiming non-qualifying expenses. In this way you ensure that you are maximising your disability tax relief, but staying on the right side of the law.
3. Are you claiming expenses as donations?
If you pay someone for a product or a service, you are not making a donation. You are receiving something in return for the money that you have parted with. When you pay your child’s special needs education school fees, for example, you are receiving a service in return for the fee paid. You have not made a donation to the school. The same applies to any other payment that you make for which you expect a product or service in return. When you make a donation, you do so out of generosity and freewill and your only expectations should be a “thank you”, a smile and a good feeling. If you do make a genuine donation, ask for a section 18A tax certificate.
4. Are you arranging your tax affairs efficiently?
Every family has unique circumstances and these should be taken into account when planning your family’s tax matters. Perhaps you have a generous relative or a group of people providing financial support to your family – you could be treating these receipts incorrectly when it comes to tax. Should the medical and disability-related expenses be taken into account through your tax return or your spouse’s? What happens if you are no longer married? How should things be dealt with if you pay the medical aid premiums, but your spouse is paying expenses such as special needs education school fees and OT? What difference does it make if your dependant is an adult child? Can you claim the relief for a foster child? It is of utmost importance that the most tax efficient solution is implemented based on your unique circumstances to ensure that you are receiving the maximum tax relief.
5. Are you using a disability tax specialist?
Disability tax law is complex and if you want peace of mind that your tax matters are attended to in a manner that secures the maximum possible tax relief for you, whilst at the same time ensures that all the correct disability tax laws and SARS compliance procedures are adhered to, you should seek the assistance of a disability tax law specialist. It becomes increasingly difficult for a disability tax law specialist to resolve your tax matters if you have made mistakes with your submissions. It is best to make use of specialist services to handle your tax affairs. A disability tax law specialist can also review your previous tax submissions to determine whether it is possible to secure tax relief that you may have not received.
Bendels Consulting® - The Tax and Disability Specialist®, is a niche tax consulting practice. For the past nine years we have specialised in the provision of tax compliance and tax law advisory services to individuals where there is a “disability” in the family. The key focus of Bendels Consulting® relates to the complex tax treatment (and associated tax breaks) in respect of medical expenses, especially those pertaining to “disabilities”. In particular, we aim to ensure that qualifying taxpayers obtain all their applicable tax breaks in respect of current, future and prior-tax years. We have a greater understanding of the nature, challenges and expenses associated with disabilities and we know the importance of ensuring that your non-discretionary expenditure translates to tax relief.
Phone: 0861 BENDELS or 0861 236 3357