![]() ![]() SARS Commissioner, Edward Kieswetter says: “The need for many employees to work remotely has been necessitated by the Covid-19 pandemic in an unprecedented manner. Whilst all claims for home office expenses may be subject to further verification or audit by SARS, it is important to note that there is a high likelihood that a taxpayer who claims home office expenses for the first time will be selected for verification or audit.Taken together with the loss of part of the capital gains exclusion, these savings may outweigh the benefit of a claim for home office expenses. Taxpayers may also find that working from home led to savings on expenses they would otherwise have incurred, like transport, wear and tear on vehicles and so forth. Careful consideration should, therefore, be given before a claim for home office expenses is made. The home office area will, on a pro-rated basis, be excluded from the primary residence exclusion of R2 million on disposal of the residence. Where the home office is in taxpayer owned property, taxpayers should note that formally defining part of a primary residence as a home office will most likely have an adverse impact on a future capital gains determination.Home office expenses must be claimed against source code 4028 in the income tax return.Any home office expenses must be linked to employment use and must be verifiable and.The office must have been used for more than 50% of the employee’s duties or, if the employee earns more than 50% of their remuneration from commission or other variable payments based on work performance, more than 50% of the employee’s duties must have been performed away from the employer’s office.The office must have been used regularly and exclusively for work purposes.An office, appropriately equipped, must have been set up at the place of primary residence.The legal requirements remain the same as before the Covid-19 pandemic. There have been no changes to the legislation in relation to a “home office”.In considering whether to claim for any related expenses, it is important to note the following: Understandably, due to the impact of Covid-19, a number of individuals spent more time than usual working from home. This statement serves to provide additional clarity for individual taxpayers who may be considering submitting claims for home office expenses in their income tax returns that that can now be filed for the 2021 tax year. Tshwane, 1 July 2021 – SARS has recently published an update on its website in relation to home office expenses. SARS ADVISES INDIVIDUAL TAXPAYERS TO CAREFULLY CONSIDER ANY CLAIM FOR HOME OFFICE EXPENSES BEFORE FILING THEIR INCOME TAX RETURNS ![]()
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