In our blog today, Tax season this year and interest rates lets unpack it.
2024 Income Tax Season
The 2024 income tax season is now underway, and many taxpayers are in the process of submitting their returns. Here are a few key points to keep in mind:
Auto Assessments: If your tax situation is straightforward, auto assessments will apply. However, if you have contributed to a retirement annuity, received investment income, or installed solar panels between 2023/03/01 and 2024/02/29, it’s crucial to edit and resubmit your tax returns to include these.
Solar Panel Claims: To qualify for deductions on solar panels, ensure you meet the following criteria:
Each panel installed generates more than 275 kW.
The panels were new at the time of installation, not second-hand.
A valid Certificate of Compliance (COC) issued by an electrician.
Note that inverters or batteries do not qualify for this deduction.
SARS may request supporting documentation, so be prepared to provide it.
Work-from-Home Deductions: If you worked from home, you must have a letter from your employer stating this. Additionally, remember that you can only claim the square meterage of the office space used for work.
If you have any questions or need assistance with the completion and submission of your taxes, please feel free to reach out to us.
Interest Rates Update
The Monetary Policy Committee (MPC) held their meeting today and have opted to keep interest rates unchanged at (Prime Lending rate at 11.75% and the Repo Rate at 8.25%). This aligns with market expectations that rates will start to decrease around September 2024, following anticipated rate cuts in the US. We appreciate your patience as we wait for this easing to come through. Many economists expect a 25 basis point cut at the Next MPC meeting. We will have to see what happens with Inflation between now and then.
Vehicle Security Alert
In the news, it would seem that a new spike in theft, and high jackings are taking place, and its not what you expect. This time around its not Toyotas or Ford Rangers. The increase in hijackings and thefts targeting certain motor vehicles, particularly models from Haval, GWM, and other value-priced brands. The high demand and sales volume of these vehicles have made them attractive to the black market. Insurance companies are likely reviewing their premium pricing models for these vehicles. If you own one of these models, please take extra precautions and remain vigilant.
Stay safe, and have a great day.
Your financial planning Partner.
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