28 February marks the tax year-end. Everything up until this day will be part of your 2024/2025 tax filings. As this date approaches, it’s crucial to focus on your financial affairs to ensure that you maximise any available tax deductions to lower your tax liability.

Increase your retirement contribution

You may contribute up to 27.5% of your income to your retirement fund without incurring taxes (capped at R350 000). This not only diminishes your tax obligations but also supports your future retirement needs. So if you haven’t yet hit the maximum allowable contribution for the current tax year, now is the time to top up your retirement savings.

Max out your TFSA

If you haven’t yet utilised your R36 000 yearly tax-free savings threshold, consider making a lump-sum contribution before the tax year-end. It’s important because annual limits restrict how much you can invest, and missed contributions cannot be recovered in subsequent years.

Make use of all allowable expenses

Compile your deductible expenses meticulously. If you’ve been working remotely, explore potential claims for home office costs. For medical expenses, it’s wise to route all costs through your medical scheme, even if it doesn’t cover them in full, to maintain a comprehensive record for SARS.

Utilise your CGT exemption

Should you decide to sell assets like shares or unit trusts, consider spreading the transactions over February and March. This can help distribute the tax liability across two tax years while taking advantage of the R40 000 annual tax exemption.

Get your travel logbook sorted

For those claiming travel expenses for business purposes, maintaining a logbook is essential, as you’ll need to provide this when submitting your tax return later in the year.

Choose a dedicated notebook or use a digital app specifically designed for tracking mileage. For each business-related trip, make sure to record the date of travel, the starting point and destination, the starting and ending odometer readings (which will give you the distance covered) and the reason for the trip.

Keep the logbook updated regularly, since it’s easier to record the details at the time of travel as opposed to trying to remember them later.

If your car is used for both personal and business purposes, include all trips and clearly differentiate between personal and business mileage. This helps in calculating the percentage of business use versus personal use.

Keep any relevant receipts or documentation (e.g., tolls, parking fees) that corroborate your business trips.

Consider using apps or software that automatically track your mileage using GPS. This can save time and increase accuracy.

Ensure a stress-free filing process

By being organised and staying on top of your admin throughout the tax year, you will have everything you need at your fingertips when the time comes to prepare your tax return, alleviating any stress and making the process of filing your return a breeze.