Feeling overtaxed and overwhelmed?

 Save R1 million in taxes, using these monthly tax tips, tools and savings

Stop handing tax money over, blindly

Dear taxpayer,

When was the last time the taxman picked up the bill for your legal expenses or medical expenses? When was the last time you got money back, simply by repairing your forklift, or travelling for business?

No, we’re not making this up! And you could be one of those clever taxpayers who get R36 820 in tax refunds, just for using a travel logbook. Or one of those lucky few whose home office expenses cost them nothing, just because they know how to claim the right deductions.

It’s easy really…when you know the tricks and tips, have all the latest interpretation notes, and understand how the landmark case rulings affect you.

It’s even easier when all of this lands on your desk every month, and requires nothing more of you than to put all the tax saving advice into action.

In fact, it’s as easy as a subscription to Tax Watch.

7 more tax saving tips you should implement now

My name is Rachel Paterson and I’m writing to you today to tell you about the countless ways you can save on your taxes…especially by turning the latest and many tax law amendments to your favour.

Here are just seven of the many other tax saving opportunities we’ve recently covered in Tax Watch:
 

• How to make the most of the R300 000 RA lump sum exemption (and how you can survive retrenchment with this);
• How to save 30% on any profit from listed shares;
• 3 tips to help you save tax on your claims;
• 3 tricks to cut tax on your company vehicle;
• How to make the most of medical aid contributions in 2010
• 6 travel claims snares to avoid; and
• 9 ways to smash the “no input tax claims on entertainment expenses” rule.

Here’s another tax saving opportunity for you…
 

How to make the most of your travel claims

Do you know what travel expenses you can and cannot claim? Do you know when or when not to use a logbook? Find out how to make the most of your travel expenses.

Save R 26 606.40 by keeping an accurate logbook
Maintaining an accurate logbook is a tedious affair but the benefit of additional tax savings may make it worthwhile.

An accurate logbook means you can base your claim for travel expenses for business and private use on the actual distances travelled. You may also be able to reduce the taxable benefit of the company vehicle used by you. No logbook puts you at the mercy of the provisions of the Income Tax Act, that can in some cases be extremely costly.

In fact, as of 1 March 2010, if you’re using the gazette rates per kilometer method for calculating your travel claims, then no logbook means no claim!

Our practical example below shows you how you can easily save R 26 606.40 by keeping an accurate logbook.

Who can benefit from an accurate logbook?
• Sole proprietors, commission earners
• Employees who receive travel allowances
• Employees, directors, members, etc. using a company owned vehicle

Example
Vincent, a commission earner, is entitled to claim his actual motor vehicle expenses as a deduction from business income received. The cost price of the vehicle used was R300 000. The total motor vehicle expenses for the year are the following:
Motor vehicle expenses
Fuel and oil                    R9 554
Insurance                      R9 780
Maintenance                  R3 564
Licence                         R120
Lease payments             R90 000
Total                           R113 018

Vincent is not, however, entitled to deduct the total cost incurred. An adjustment must be made for costs attributable to the private use of his motor vehicle. The quantum of this adjustment can be determined in two ways:
1. Where accurate records of private and business distances travelled were not kept:
Private usage is determined in the same way that the private use of a company car is determined where no travel allowance is received. Assuming that Vincent carries the full costs of the running the vehicle the private use of the vehicle is calculated as follows:
R 300 000 x 100/114 = R 263 158 (VAT to be excluded)
(R 263 158 x 2.1%) x 12 = R 66 315.82
 
Total expenses             R113 018
Business use of vehicle
R 113 018 – R 66 315.82 =  R 46 702.18

Allowable deduction  R 46 702.18
2. Where accurate records of private and business distances travelled were kept:
Private usage is calculated on the actual business distances travelled in relation to the total mileage.
 
Summary of information recorded in an accurate logbook
Private km                   10 983 km
Business km                20 276 km
Total distance            31 259 km

Allowable deduction where an accurate logbook is kept
Total expenses            R113 018
Deemed business use of vehicle
113 018/31 259km x 20 276km
Allowable deduction R73 308.58

An ACCURATE LOGBOOK would increase Vincent’s tax deduction by R26 606.40! 

Save on your taxes every month

Tax Watch is an eight-page monthly newsletter jam packed with one tax saving tip after another, plus real life case studies and practical examples. With advice and insight from experts who’re on the SARS commissioner’s speed-dial, Tax Watch is a must-read for anyone who wants to shrink their tax bills once and for all...

To show you how much Tax Watch can save you every month, I’m offering you a RISK-FREE trial.

Click here and I’ll send your first issue of Tax Watch FREE.

You’ll have no obligation but to read it, apply my tips and save, save, save.

If you decide you can save more on your taxes without my service, simply send me an email and I’ll cancel your subscription. You’ll owe nothing, there’ll be no hard feelings, and you can keep your free issue.

But I know you’ll find Tax Watch to be the tax-saving godsend it is. Within a few shorts months, you’ll have saved enough tax to pay for the subscription many times over.

I’m so confident you’ll save significantly on your taxes that I’d like to go a step further. When you pay for your first issue, that Tax Watch newsletter will:

1. Show you how to reduce your tax burden (saves you/ your business money)
2. Show you how to avoid tax traps
3. Reduce your risk of tax audits
4. Give you access to legally viable but little-known tax loopholes and deductions- with no jargon
5. Show you how to do it yourself, with practical, easy-to-use tips
6. Show you how you can put our advice into practice immediately, to save on taxes (and avoid audits, penalties and tax traps)
7. Help you avoid tax penalties, by staying up to date with tax law changes
8. Give you access to our Tax Helpdesk will respond to your queries in follow-up issues of the newsletter- at no extra cost to you
9. Save money as you'll have no need to hire and pay for a tax consultant
10. Be getting the best advice- our tips and checklists are approved by tax specialists who previously worked with SARS

In addition to all these benefits you'll receive when you subscribe to Tax Watch you'll also get:

• 99 Tax Tips, an easy-to-use book containing 99 practical tax tips you can implement immediately.
• Tax Bulletin- our tax tip in your Inbox every day. 

Finally, you’ll also be able to send us questions if you have a specific tax issue tying you up. We'll publish the answers in the following issues of Tax Watch. This service is free to subscribers only.

Take us up on this RISK-FREE trial offer and subscribe now, by following this link. You’ll save thousands (if not millions) of tax.

Yours sincerely

Rachel Paterson
Business to Business Publisher

PS: There’s absolutely no risk to you so put Tax Watch to the test. Your first issue is FREE. If you cancel before the end of your 28-day RISK-FREE trial period, you’ve lost absolutely nothing. Instead, you’ll have gained several new tax saving tips. Go on. Order now.