Welcome back to Week 2 of the Medical Aid Credits Series
What is Medical Scheme Fees Tax Credits?
- Medical Scheme Fees Tax Credits is a rebate which reduces the normal tax a person pays. This rebate is non-refundable and can’t be carried over to the next year of assessment.
- In other words, this rebate will reduce your normal tax to a lesser amount or nil, however it can’t create a negative amount.
- It applies for years of assessment starting on or after 1 March 2012 (from the 2013 year of assessment).
Who is it for?
Over the next few weeks Pay Solutions are going to discuss Medical Aid Credits, today we are looking at the background.
BACKGROUND OF MEDICAL AID CREDITS
As a rule, expenditure of a domestic or private nature is not deductible for tax purposes. However, an individual’s ability to pay tax may well be adversely affected by costs incurred as a result of illness or disability.
- For this reason, the Act provides a certain degree of relief for medical and physical impairment or disability expenditure paid by the taxpayer.
SARS tax tables 2016 came into effect on the 1st March 2016. Do you have trouble keeping up to date with Tax Changes? Are you calculating tax based on the correct rates? Employers need to ensure that they are using the the correct rates.
SARS tax tables 2016 – All changes below are effective from 1 March 2016 to 28 February 2017:
As part of Pay Solutions payroll services, we will ensure that the correct tax and other levies are being deducted. We will complete the relevant documentation and submit IRP5 tax certificates via EasyFile and SARS efiling on behalf of our clients.
Pay Solutions have smart tips which will assist with your Income Tax Return
Tax Season, you need to submit an ITR12 (which is your Income Tax Return) so we can calculate your tax on your income and the tax-deductible expenses for the assessment year (1 March 2014 – 28 February 2015), which may, in some cases, result in a refund.
Does this apply to you? company cars retail market value principal that came into effect on the 1st March 2015. Pay Solutions strive to always put our clients first by delivering the best payroll advice and service. An important part of the service offered is to keep up to date at ALL times on legislation changes.
company cars retail market value principal
Pay Solutions Outsource Payroll Services use a cloud hosted Payroll / HR Solution called PSIberWorks. This can provide clients with online access to all aspects of their payroll as well as HR information when required.
Benefits of a Cloud Hosted Payroll
Pay Solutions is responsible for processing and managing your payroll. However, you can access all employee, as well as company information via the cloud any time. This access is naturally controlled by user numbers, passwords and client defined access levels.
You can have 24/7 hour access to payroll information via the cloud where you can do the following: